Raise custom and drop excise duty on imitation jewellery: Vishwas Shringi

This budget should have some favorable reforms for players who have been contributing to Govt. initiatives such as 'Make in India' & 'National Skill Development'.

With the launch of ‘Start-Up India, Stand-Up India’ Action plan, the growing e-commerce industry has got positive directions from the Govt. but it expects more clarity on certain aspects. The industry is undergoing a paradigm shift and bringing in a lot of innovation and change. The e-commerce industry is growing at a faster pace with the increasing use of mobile and internet. According to ASSOCHAM, the e-commerce sector will be worth USD 38 billion by 2016.

Clarity on FDI & GST Roadmap
The E-Commerce industry seeks the Budget to give more clarity on FDI policies and GST roadmap. Taxes such as CST, VAT, excise and service taxes among others needs to simplified for smooth functioning of the industry. Maximum job opportunities can be generated in the industry, with relaxation of FDI limit. Clarity in processes & systems and Single Window System will help the sector flourish at faster pace.

VCs Interest
Considering that E-Commerce companies also have to take care of Venture Capitalists, who have invested in the venture, it is important that the Govt. ensures implementation of aspects such as funds-of-funds and other measures introduced in the action plan and help entrepreneurial ventures grow. The Govt. should look at increasing the tax holiday period from three years as hardly any start-up become profitable in just three years of inception.

Gems & Jewellery Sector 
The Indian jewellery manufacturers and retailers make a significant contribution of 6 to 7 % towards Indian GDP, creating value addition of Rs 100,000 crores and also contribute 14% towards exports.

The upcoming Budget should provide tax incentives and relief measures for the labor-intensive gems and jewellery sector to give a boost to the jewellery manufacturing sector as well as exports. The brand is currently exporting to international markets through its online presence on international marketplaces such as Amazon.com, Amazon.uk, Jadopado.com, etc.

The future channel expansion also includes opening of physical stores in international markets covering Gulf, US and European markets. We believe that Honorable Finance Minister will bring in some effective measures to bring down Gold Imports.

The Gems & Jewellery segment is also one of the top employment generating industries, where 90% of manufacturing is by ‘karigars’ and 80% of retailing by ‘independent’ jewelers.  

Govt. Initiatives 
This budget should have some favorable reforms for players like Voylla.com, who have been contributing to Govt. initiatives such as ‘Make in India’ & ‘National Skill Development’. We expect to see a raise in custom duty and a drop in excise duty on imitation jewellery.

The brand supports ‘Make in India’ initiative and has opened up new avenues of employment for labours engaged in jewellery designing, as the brand has set up its state-of-the-art manufacturing facility in Jaipur, Rajasthan. While the Gold market might be witnessing a slump but the imitation jewellery market is offering these labor new employment avenues.

Authored By: Vishwas Shringi, Founder, Voylla.com

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