Government considering banning of 24 K Gold Export

Banning of 24-carat jewellery may help prevent misuse of bank funds and round-tripping of gold according to finance ministry.

Post By : IJ News Service On 08 June 2017 10:54 AM

24-carat jewellery is mostly available as bars and coins and is not used for jewellery world over. However, a few Indian export companies export 24-carat jewellery just as it is with minimal refining. These are then sent to other countries and are imported back from there. This is a tactic used by these companies to pose a picture of high exports to get bank credit at a very low interest.

The GJEPC has brought this to the Government’s attention and the finance ministry is not too happy about this trend. However, earlier this week, Sanjeev Agarwal of Gitanjali Export told Economic Times in an interview that, “banning export of 24 carat gold jewellery won’t have any impact.” If the exporters are “genuine” the impact of this movie will be “nothing” he said.

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