Budget 2023: Populist, People Friendly Budget A Possibility

It is safe to assume that the 2023 budget will be a populist, people friendly budget given its proximity to the central elections next year. We don't foresee drastic and radical changes in policies in this budget. The focus will remain on boosting Infrastructure, Make in India, EVs, power generation etc.

For the jewellery industry, there has been constant conversation between representatives of different trade bodies with the Government of India with respect to the pricing difference of gold between the grey market and the regular market leading to huge disparity and increase in smuggling of gold. This is primarily due to high import duty rates. Gold is at over 54000 at the moment and the disparity in pricing is close to 4000 rupees for 10 gms in the grey market.

For this, we expect and hope that the Government will cut duties on gold imports, rationalize the prices and thereby help create a level playing field between the regular market and the grey markets. Beyond this, we also hope that the government will come up with export incentives to boost the jewellery export segment. We also are seeking more clarity on the bullion exchange in the GIFT City. A lot of policies still need to be worked on and while exchange has started, it has failed to attract buyers and sellers alike. Hence, there is a need for policies that will help increase volumes.

On the digital gold side too, there needs to be proper regulations in place for both the jewellers as well as customers to take it seriously. Above all else, this year's budget will be a growth oriented budget which will increase consumption and focus on manufacturing that would result in robust GDP growth for the country.

(Dr. Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers)