The Hindu Business Line : Minimum value addition norm for jewellery exports cut

The Government has reduced the minimum value addition for jewellery exports from the country. This has apparently been done at the behest of trade and in the wake of increase in bullion prices.

The minimum value addition in the case of plain gold/platinum/silver jewellery has been pegged at 4 per cent, which is lower than the 4.5 per cent level specified earlier by the government.

For all types of studded gold/silver/ platinum jewellery, the minimum value addition has been slashed down to 6.5 per cent from 15 per cent. In the case of jewellery manufactured by a fully mechanised process, the Government has lowered the minimum value addition to 2 per cent from 3 per cent.

Similarly, the minimum value addition for gold/silver/platinum medallions and coins (excluding the coins of the nature of legal tender) has been pegged at 2 per cent (3 per cent earlier).

In 2005-06, gem and jewellery exports touched about $16.66 billion (Rs 73,304 crore). This represented a 6.25 per cent increase over the gem and jewellery export of $15.68 billion (Rs 70,245 crore) recorded in the previous year. Gold jewellery exports in 2005-06 stood at $3.86 billion ($3.81 billion).

More Stories on : Gems & Jewellery | Policy | Exports & Imports

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