India’s gold imports drop 34% in February 2016
India’s gold import plunged by 34% to 36.9 tonnes in February this year as compared to the same month of previous year.
The imports of gold have been falling because of the ongoing strike, now entering into the 35th day, which, as the industry says, has significantly injured the domestic industry. Jewellers have been on an unending strike against the proposed 1% excise duty on jewellery.
“In India, jewellery is largely produced by the SMEs and they are not equipped to follow the rigid compliance of excise norms. The imposition of excise would severely impact jewellery production in India resulting in loss of employment to the uneducated but skilled jewellery workers,” GJEPC Chairman Praveenshankar Pandya had said, expressing his disappointment over the Union Budget 2016-17 announcements.
GJEPC had earlier said it would continue to engage the government on key issues and challenges faced by the industry.
These issues have affected the sales of gold in the country. India is the world’s second largest consumer of gold, and the industry is facing several difficulties in the current financial year.
The cumulative gold imports during the first eleven months of FY2015-16 surged by 20.5% against the corresponding period of last year.
High duty on jewellery affects the domestic industry, as gold is the second largest import item for India after petroleum.
to success.