Govt pushed jewellery sector towards undeclared lockdown: Congress

The Congress on Friday termed Prime Minister Narendra Modi’s appeal to defer gold buying for a year a “death warrant” for the jewellery sector and demanded from the Centre an economic package for 3.5 crore people linked to the sector.

Addressing a press conference, Congress general secretary Randeep Surjewala accused the Modi Government of pushing the jewellery sector towards an “undeclared lockdown” with the appeal and the subsequent increase in import duty on gold and silver. 

He said the sector contributes largely to the exports of the country, and feared the rise in duty from 6 per cent to 15 per cent on gold imports would lead to smuggling and illegal trade. 

Surjewala termed the prime minister’s appeal an attack on India’s cultural heritage, social customs and religious traditions, as gold forms an integral part of them, and also serves as a safety net for millions of women.

He said that over 90 per cent of India’s jewellery trade operates through MSMEs and small jewellers, and nearly 3.5 crore people are dependent on the sector, including goldsmiths, traders, artisans and workers. 

The Congress leader called the advisory “disastrous” and an attack on the livelihoods of backward communities and traditional artisans linked to the manufacture and trade of jewellery. 

“We demand that the Modi Government immediately announce a special economic relief package for 3.5 crore goldsmiths, traders, artisans and workers involved in the gold jewellery industry. 

“The Government should also consider starting domestic gold mobilisation and recycling and use of idle gold stocks and amend income tax provisions to permit households to lend gold to jewellers of their choice,” Surjewala told reporters.

The Congress will protest this “brutality” from Parliament to the streets, he said.

The Rajya Sabha member criticised the Centre’s May 13 decision to increase import duty on gold and silver from 6 per cent to 15 per cent, alleging that the move would both hurt legitimate jewellers and encourage gold smuggling networks.