2006/7 Indian Budget Well Received by Gem and Jewelry Sector

2006/7 Indian Budget Well Received by Gem and Jewelry Sector
(February 28, ’06, 4:03 IDEX Online Staff Reporter)
 

Following the 2006-7 Indian budget speech, Bakul R. Mehta, the chair of the Gem & Jewellery Export Promotion Council has congratulated the Finance Minister, Shri P. Chidambaram for the special considerations made towards the gem and jewelry sector.
 
Says Mehta, “the Indian gem and jewelry industry is now set to make a quantum leap forward.” In his budget, the minister announced the establishment of an expert committee to consider recommendations proposed by the industry, which will help India become an international gem and jewelry trading hub.
 
The committee is expected to work out details, rationalize taxes, and streamline rules within the next month or so. This, together with the minister’s in-principle agreement to replace income-tax for the gem and jewelry industry with a presumptive tax – as is already the norm in international centers – will boost exports, increase foreign direct investment in this sector and let India move to the forefront of the global gem and jewelry industry
 
The Gem & Jewellery Export Promotion Council also welcome the finance minister’s announcement that with declining import duties, export oriented units (EOU) should be on a par with domestic tariff area (DTA) units. “The announcement of EOU to be made at par with DTA units is also a welcome move as it would provide the same level playing field and help industry boost its exports in future,” says Mehta.