Government Raises Duty Drawback Rates For Gold, Silver Jewellery Exports
Customers look at gold bangles in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)  

Government Raises Duty Drawback Rates For Gold, Silver Jewellery Exports

Bookmark

The government has increased duty drawback rates for gold and silver jewellery, a move that would make Indian exports from these sectors more competitive in the global market.

The drawback rates have been raised to Rs 372.9 per gram for gold jewellery from Rs 272 per gram, according to a notification of the finance ministry.

Similarly, for silver jewellery, it has been raised to Rs 4,332.2 per kilogram, from Rs 3,254.

"This notification shall come into effect from Nov. 16, 2019," the notification has said.

An official of the Gems and Jewellery Export Promotion Council said the exporters were demanding an increase in the drawback rates as the government in the last Budget had raised import duty on gold to 12.5 percent from 10 percent.

"The government's decision to raise the rates would help in increasing the competitiveness of gold and silver jewellery," the official said.

During the April-October period this fiscal, exports of gems and jewellery dipped by about 2 percent to $18.25 billion.

Gold jewellery during the period has increased about 3 percent to $7.3 billion.

Silvery jewellery has also jumped to $737.7 million from $407.9 million during April-October 2018-19.

Under duty drawback, exporters get a refund of all duty and taxes which were paid for the inputs against the exported products.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.