Kerala gold trade sector pins hopes on proposed jewellery park
Association asks Centre to cut gold import duty to 6%, citing smuggling and a weak rupee
Kerala's gold trade sector is optimistic about the State Government's proposed jewellery park, which aims to revitalize the industry and foster employment. S Abdul Nazar, the State General Secretary of the Kerala Gold and Silver Merchants Association, informed Chief Minister VD Satheesan that the sector is ready to contribute over half of the project's total cost.
Nazar also raised concerns regarding the gold trade sector, requesting a meeting with relevant stakeholders to discuss challenges and future development plans. The jewellery park is seen as a potential driver for strengthening Kerala's gold manufacturing ecosystem, attracting investment, and generating new jobs. The association also appealed to the Centre to lower the import duty on gold to 6 percent, as recent reviews showed that high duties have not yielded the expected economic benefits.
High import duties encourage smuggling, while legitimate traders face financial strain due to excessive duties, taxes, and compliance costs. Smuggled gold entering at lower prices poses a significant challenge to the organized jewellery sector, despite a decline in import volumes. However, foreign exchange expenditure remains high due to international prices and a weak rupee.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
