GJEPC warns 15% gold duty hike to choke MSME jewellery exporters' working capital
Doubled import duty forces Rs 28-30 lakh/kg bank guarantees, squeezing the 80% MSME base of India's gems & jewellery export sector. GJEPC flags smuggling risk and 30% March export drop, with West Asia trade — 18% of diamond exports — already disrupted.
What happened
GJEPC warns India's doubled gold import duty to 15% will inflate export costs, fuel smuggling, and choke MSME jewellery exporters' working capital via Rs 28-30
Key facts
- 15% gold import duty
- Rs 28-30 lakh bank guarantee per kg
- 80% MSME membership
- 18% diamond exports to West Asia
- 68% rough diamond imports from UAE/Israel
- gems & jewellery exports -30% in March
Why this matters
Distressed MSME exporters and smuggling-driven market share shifts open a window for consolidation plays, with stronger balance-sheet players positioned to acquire capacity at depressed valuations.