Kerala’s gold trade sector is pinning its hopes on the State Government’s proposed jewellery park, which is expected to revitalise gold trading and manufacturing while creating significant employment opportunities.
In a representation submitted to Chief Minister VD Satheesan, S Abdul Nazar, State General Secretary of the Kerala Gold and Silver Merchants Association, said the gold trade sector was prepared to bear more than half of the total cost of the proposed jewellery park project, which was announced in the State Budget.
Nazar also brought several issues concerning Kerala’s gold trade sector to the Chief Minister’s attention. Satheesan assured him that a meeting of relevant stakeholders would be convened soon to discuss the challenges facing the sector and explore plans for its future development in detail.
The proposed jewellery park is being viewed by industry representatives as a potential catalyst for strengthening Kerala’s gold manufacturing ecosystem, attracting investment and generating new employment opportunities.
The association also urged the Centre to reduce the import duty on gold to a rational level of 6 per cent as a review in the last four months revealed that the anticipated economic benefits have not fully materialised. The high import duty creates a financial incentive for smuggling, while legitimate traders bear the burden of high duties, taxes and compliance costs. The influx of smuggled gold at lower prices poses a serious challenge to the organised jewellery sector, he said.
Import volumes have declined, however foreign exchange expenditure has not come down as expected due to high international prices and a weak rupee, he added.