To boost manufacturing and exports of gems and jewellery, Government may consider 2-4 per cent reduction in import duty on it in the forthcoming Budget
The industry has already sought reduction in customs duty on gold to 2 per cent, from 10 per cent now.
"Gold imports are declining continuously. Gems and jewellery sector contributes significantly in the country's total exports. On account of this, we are expecting a cut in the import duty. But it is up to the Finance Minister to take the final decision in the Budget," said a source.
The Government may consider cutting the duty by 2-4 per cent, sources said.
Commerce and Industry Minister Nirmala Sitharaman had last month hinted that the gems and jewellery sector, which employs about 3.5 million people, may get some incentives in the Budget.
The issues including the import duty related to this sector were widely discussed recently at a 'Make In India' workshop and a presentation was given to Prime Minister Narendra Modi on it by Commerce Secretary Rajeev Kher.
The ministry suggested that import duty on gold and silver be reduced to 2 per cent from the current 10 per cent.