India reduces value addition norms in jewellery

ACCORDING to Financial Express the government of India has eased value-addition norms on jewellery with an eye on boosting exports in the face of rising precious metal prices.

International gold prices have nearly doubled from $300 an ounce in January, to around $600 presently, after reaching a record high of $730 an ounce in May, making it difficult to achieve previous value-addition levels, explained foreign trade director-general, K.T. Chacko.

For studded gold, silver and platinum jewellery, the value addition norms have been brought down to 6.5 per cent from 15 per cent, while it has been reduced to 4 per cent on plain gold, silver and platinum jewellery, from 4.5 per cent earlier.

Minimum value-addition on jewellery fabricated using the fully mechanised process has been set at 2 per cent from 3 per cent previously. Similarly the norms for gold, silver and platinum medallions and coins (excluding coins of the nature of legal tender), will be 2 per cent. The value-addition level for gold, silver and platinum findings and mountings manufactured by a mechanised process will now be 3 per cent