In an effort to ensure a reduction in the trade balance deficit, the Indian government adhered to a policy that was based on limiting the import of gold, according to a weekly message from Diamond World. Under this policy, the duty on gold imports was raised to 8%, and jewelry companies were recommended to purchase gold with payment on a cash basis. However, it should be noted that sometimes policies can be more effective if additional measures and new solutions are developed and adopted.
In particular, the Indian jewelery and jewelry industry has proposed a solution that will not significantly affect the growth of the industry (while the existing measures may lead to the spread of gold smuggling), and at the same time will not allow jewelers to stay in trouble.
The All India Gems and Jewelery Trade Federation (GJF) appealed to its participants, urging them to refrain from selling gold bullion and coins. So, the financial company Reliance Capital suspended sales of gold in all its divisions.
In connection with such a limitation, one can hope that gold imports will decrease, which will help balance the country's trade balance. The Indian jewelery and jewelry industry employs large, medium and small jewelry companies. Increasing the duty will certainly make the yellow metal more expensive, which will negatively affect the development of the business of medium and small jewelers, but the coordinated efforts of the entire industry with the support of the government can bear good results.