Budget 2024 Expectations: What gold & diamond industry want from Modi Government

Budget expectations from Suvankar Sen, MD & CEO of Senco Gold & Diamonds

An infrastructure boost by the Budget can ensure that raw materials are available at the most competitive prices. This can be possible if Gift City allows the international gold suppliers to supply to the Indian manufacturers at a competitive price. More importantly, what will be needed is the availability of gold in the form of gold loan at very competitive pricing. This move will allow gold companies to make the business more competitive.

While we have the inherent ability to manufacture for the world, the Budget needs to ensure a continuous focus on skill development. Artisans need to update themselves with the international standards of manufacturing. And if any machinery is procured, like the way we have been buying in SEZs in which we get certain duty benefits, we should be able to import such machinery at lower duties and get government support and subsidies. Budget measures will thus ensure India’s capacity of manufacturing is fully utilised even in the lean seasons of the world market demand.

Budget can also look into providing special financing to help Indian brands and manufacturers to establish businesses outside. That would help to further take the brand ‘Made in India’ to the global stage.

Finally, being one of the largest exporters of gems and jewellery, the industry is contributing to a major portion of the country’s total foreign exchange reserves. If the Budget can support manufacturers in terms of cost of capital or capex, then that will play a big role and provide a boost for various players to take steps to improve their reach across the world. Brands can thus reach out not only to the Indian diaspora but across other communities. The government via budgetary steps must support the industry with new technologies – be it AI, Lab grown diamonds or latest machinery.

Lastly, to boost liquidity and exports in the Jewellery Industry, If the government reduces the customs duty for releasing of margin money with banks, it will be helpful for the industry.