Rajkot: Proposal in the Union budget 2022-2023 to increase customs for customs for raw material imports will have a negative impact on the business of Rajkot Imitation Jewelry, Industrial Fear.
The industry imports 60% of raw materials from China, which will now be more expensive.
Opposing a proposal to climb tasks, industrial experts stated that to punish a smaller part of taxiors, the government wounded the entire sector.
Rajkot imitation jewelry turnover around Rs 3,000 Crore per year.
There are 1,000 wholesalers involving two lakh people in this sector which produces Rs 400 Crore per year from exports.
In his budget speech, Minister of Finance Nirmala Sitharaman proposed at least Rs 400 per kilo for an increase in import duties to fain imported imitation jewelry imports.
However, the domestic industry does not object to the rising assignment of readymade jewelry.
The HSN code, which is used for commodity import and export, is the same as imitation jewelry and raw materials.
Jignesh Shah, President of the Imitation Jewelry Association said, “Nearly 50-60% of raw materials are being imported from China.
It is impossible for us to produce raw materials in India.
The proposal of the Minister of Finance will make our products more expensive and will have a bad impact on exports.
“The task of importing raw materials is 30%.
This means, if raw materials are rs 500 per kilo, importers pay Rs 150 tasks on it.
But now, the importer needs to pay Rs 400 as a task.
China has the latest technology and workforce that produces cheap and good raw materials.
According to market leaders, China is the main competitor of India in Jewelry ready to use, but they cannot compete with Indian costs and designs.
If the raw material becomes more dear, it will make Indian exporters less compatible.