Greetings from The Gem & Jewellery Export Promotion Council (GJEPC)!

This is in reference to the meeting held on 22nd May 2026 with key industry associations, to deliberate on measures for reducing the Current Account Deficit (CAD), particularly in the context of gold imports and domestic gold mobilisation.

In line with the above, GJEPC, in coordination with AIGJC & other stakeholders from the industry, is undertaking consultations to formulate a comprehensive industry proposal on :-

1. Promotion of Low-Karatage Jewellery to reduce overall gold consumption while sustaining manufacturing and consumer demand.
2. Revamping of the Gold Monetisation Scheme (GMS) through a renewed incentive framework to mobilise idle household gold into the formal economy.
3. Encouraging Exchange of Old Gold Jewellery to promote recycling and reduce fresh demand for imported gold.
4. Discouraging Passive Gold Investments such as bars and coins, while treating jewellery consumption distinctly due to its high domestic value addition and employment generation.
5. Incentivising Gems & Jewellery Exports, as the sector is a major contributor to foreign exchange earnings and employment. Enhanced export support would help offset weaker domestic demand and strengthen India’s forex position.

It is agreed broadly that the following broad principles would be followed while preparing the industry paper:

• Temple gold will remain outside the scope of any proposed framework or changes.
• No amnesty scheme under the Income Tax framework will be considered.
• No recommendation on reduction or removal of import duty on gold should be proposed under the current framework.
• Measures need to be explored to temporarily discourage the investment in gold in any forms like bars, coins, billets, ETFs etc.
• The proposed framework should ensure protection of value and inspire confidence among consumers and participants.
• The scheme should operate strictly within existing regulatory norms of Govt. and permitted
• Hedging or price protection mechanisms may be explored to address price volatility risks.
• Rules and operational procedures should be practical, transparent, and non-restrictive for trade.
• Jewellers will continue as principal medium for implementation of the framework, backed by appropriate declaration, valuation, and monitoring mechanisms.
• Promotion of lower carat jewellery (9K, 14K, and 18K hallmarked jewellery) will be encouraged to reduce gold consumption intensity.
• Adequate safeguards against individuals & firms indulging in smuggling should be incorporated by Govt. along with stringent provisions for violations.
• The industry to actively support anti-smuggling initiatives through cooperation and information-sharing within the legal framework.

Members are requested to consider the above points when framing their suggestions/proposals.

Given the tight timelines for submission to the Government, members are requested to kindly share their inputs, suggestions, and recommendations latest by 28th May 2026 with Mr. Sabyasachi Ray, Executive Director, at goldproposal@gjepcindia.com

The consolidated industry paper is proposed to be finalized and submitted to the Government by 5 th June, 2026.

For any clarification you may write an email to preetha.shalu@gjepcindia.com/usha@gjepcindia.com

The gems and jewellery sector plays a critical role in supporting livelihoods, MSMEs, and exports. Your timely inputs will be instrumental in ensuring that the industry’s position is effectively represented while aligning with national priorities.