Commerce and Industry Minister Piyush Goyal on Friday said he will work with gems and jewellery industry on their demand to cut import duty on gold and bring back businesses, which have shifted from the country. He also asked the industry to follow legal practices such as doing digital transactions to enhance the integrity of the sector.
"I think it is important that we have a dialogue and I am also working to support the industry request on the duty structure of gold, other precious stones and diamonds, so that we can bring back a lot more business which is possibly gone out of the country and bring that back to India," he said.
The minister said that he has requested officers to take the issues strongly with other ministries to see "how we can work together to put an end to smuggling and ensures that business comes back to India". The industry is demanding cut in gold import duty to 4 per cent from the current 12.5 per cent. The industry has claimed that due to hike in the import duty several businesses have shifted out of India.
He, however, added that to "Enable me to do that and help me succeed, I need high level of commitment from you about the integrity quotient of the industry,"
Goyal said that 100 per cent honesty is important to convince other ministries to agree on the demands of the industry. "Do not indulge in any illicit transactions. Complain to authorities who are doing wrong. If you will be honest, we are willing to ensure proper finance is available.
"If all of you come together and give that confidence that we will not engage in any wrong practices, government will be able to support you with lower taxes, lower import duties and lower GST," he added.
He added that few bad and unfortunate examples in the industry has impacted the industry as this sector works on "trust". Few people who willfully defaulted loans have brought bad name to the industry and there is a need for all the industry to ponder on this, he added.