Congress Criticizes PMs Call to Postpone Gold Purchases as Detrimental to Jewelry Sector

Congress leader Randeep Surjewala criticized the Prime Ministers recent appeal, stating that it, along with the governments decision to increase the import duty on gold and silver from 6% to 15%, could have significant adverse effects on small jewelers. Surjewala argued that such a hike in duties may not only strain the operations of local businesses but also lead to an increase in smuggling activities of precious metals as buyers seek more cost-effective alternatives.

In reaction to the new duty rates, industry experts have voiced concerns about the potential for a rise in unregulated market transactions, which could compromise the livelihoods of small-scale jewelers. The Indian jewelry market is a vital sector, often considered a significant contributor to the economy and employment.

This move comes amid broader discussions on regulatory measures aimed at controlling the gold and silver imports, which have been a point of contention due to their implications on the trade deficit and currency value. The government has yet to provide a detailed response to the concerns raised by Surjewala and industry stakeholders regarding this policy change.