The India government is expected to come out with a comprehensive gold policy quickly to encourage the sectors in gems and jewellery as well as the metal industry, as per sources info. The policy also aims at creating employments in the gold sector. It was in February that the Finance Minister Arun jaitley announced formulation of a comprehensive gold policy to develop gold as an asset class. The finance ministry is very keen on setting up a Gold Board to address the issues faced by the sector.
The main highlights of the new draft policy for gold includes a demand for bank guarantees as well as a relaxation of Goods and Service Tax (GST) applicable on jewellery exports. In addition, the industry has requested the govt to reduce import duty applicable on gold. The existing import duty on Gold is at 10%.
In reaction of the positive news for the sector, jewellery and gold stock were trading in positive note on bourses. Accordingly, the stock of Golkunda Diamonds & Jewellery was up by 3.17%, Thangamayil Jewellery up 3.70%, Tribhovandas Bhimji Zaveri Limited, up by 2.40%, Tara Jewels were up 1.25% and Rajesh Exports Ltd up by 0.50% on Friday.