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Budget 2017 to help jewellery sector get back lost sheen

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Taking a stance of ‘no news is good news’ jewellers on Thursday hailed the Union Budget, saying the focus on digitization is going to give an impetus to the sector and drive consumption.

Budget 2017 might help jewellery sector retain long lost sheen
However, on the Government proposal to ban all cash transactions above Rs 3 lakh beginning April 1 might affect demand, especially in the gems and jewellery sector

“Focus on farmers, infrastructure and digital economy will create transparency and will have an overall positive sentiment in the market,” Chairman of and Managing Director and (IBJA), told PTI.

He said the Government announcement on establishing gold spot exchange is also a positive move and will lead to better price discovery of the yellow metal.

“This move will help in our country’s participation in determining gold price in the international markets. Overall, this is a positive Budget. Moreover, we go with no news is positive news thinking,” he added.

Echoing a similar view, Chairman, GJEPC, said the Government’s proposal to extend to more than 600 districts across the country, from the 60 districts at present, will help in creating skills for the gems and jewellery sector as well.

“We welcome the move as the focus to improve on the quality and the market relevance of vocational training will also benefit our industry,” he was further quoted by PTI.

Besides, the proposal of reducing income tax for smaller companies with annual turnover up to Rs 50 crore to 25 per cent will encourage medium to small jewellery exporters and manufacturers, he said.

Chairman, (GJF), opined no new tax proposals is a positive move for the sector, recorded PTI.

However, on the Government proposal to ban all cash transactions above Rs 3 lakh beginning April 1 might affect demand, especially in the gems and jewellery sector.

“Due to transaction fee on all digital purchase, the demand is likely to be affected. However, we will be more clear on the issue when we get the Budget document,” he said.

Founder, Anmol Jewellers, Ishu Datwani opined that the Budget has been on expected line was also quoted by PTI.

“The fillip to the rural and infrastructure is a plus. Thankfully, there has been no negative announcement for the jewellery sector. In totality it’s a positive budget. Sometimes there are people like the non-residents, who have official cash over Rs 3 lakh. So the business may be affected but it’s a small negligible percentage,” he said.

Director of Lala Jugal Kishore Jewellers and Director, IBJA, told PTI, that the Rs 3 lakh cash cap will not have much impact on the jewellery industry as there already is mandatory PAN for purchase of Rs 2 lakh or above.

“Since other cash-based industries may be hit by the ruling, I expect this will divert more cash towards our industry,” she added.