Indian Budget 2007 Reported To Be Positive For The Industry

Finance Minister has made some positive announcements for the gem and jewellery sector in the Budget 2007, although there were certain expectations not fulfilled.

Introduction of Turn over tax regime in Diamonds is a historical step towards enhancing diamond industry growth. The principal acceptance of the tax system by the Ministry of Finance is affirmative and encouraging. Reduction in import duty on Cut & Polished Diamonds from 5% to 3%; Rough Synthetics from 12.5 % to 5% and unworked Coral from 30% to 10% is a positive step. However, Industry had expected reduction on CPD from 5% to 0%, which would have helped India to emerge from the largest manufacturing centre to the largest trading centre at much rapid pace.

Duty on Machinery import at 5% will allow industry to obtain latest technology for enhanced quality production at competitive rate.

�The announcement still restricts the industry to go global with full vigor. Industry feels much more can be done to develop and encourage Foreign Direct Investment in the sector and make India the preferred destination for Global Gems & Jewellery�, said Sanjay. A. Kothari, Chairman GJEPC.