India has imposed several restrictions on imports of gold, the biggest non-essential import item, to curb a record trade deficit.
The strike entered the 15th day on Wednesday.
Precious ornaments are estimated to become 3% costlier under GST
India celebrated Dhanteras, the biggest gold buying festival, followed by Diwali, when scarcity of the yellow metal and high prices pushed consumers to buy silver and diamond jewellery.
The panel will look into issues related to compliance procedure.
Jewellers sold huge quantities of precious ornaments at a premium of up to 50%.
Gold sales were reported at 40 tonnes last year; this might have been surpassed this year.
Spot gold fell as far as $1,142.10 an ounce on Thursday, its lowest since November 2014.
Sales of gold coins and bars should be curbed after reaching around 300 tonnes
The government has asked jewellers to provide information on purchases of gold bars or jewellery worth more than Rs 500,000 by the end of this month, a move seen keeping a check on big transactions amid rising smuggling.
Most of the jewellers who had reopened their showrooms in confusion on Monday, kept shutters down today at Mumbai's Zaveri Bazar and several other places, demanding rollback of the proposal.
Over 300 associations, that consists of over 3 lakh manufacturers, retailers, wholesalers and artisans among others, are participating the nationwide stir.
They would intensify the protest if their concerns are not addressed in the Budget.
Jewelers also want import duty on gold to be reduced from the current 10 per cent to at least 5 per cent.
Indian gold demand seen falling to 8-year low in festive quarter.
Jewellers see flat gold sales this Dhanteras
The government has not given any concrete assurance on the rollback of excise duty.
Gold bullion purchases across Asia slowed this week as a long rally in prices discouraged buyers.
Nearly two-thirds of India's gold demand comes from rural areas where jewellery is a traditional store of wealth for millions who have no access to the formal banking system.
Consumer sentiment seen better than last year's
Concern would kick in if imports stay at or over 100 tonnes a month.
The 80:20 rule mandates importers to channel at least 20% of the import quantity for jewellery exports.
Gold jewellery exports may decline by about 50 per cent in this financial year from last year after government restrictions reduced the availability of raw material, Gitanjali Gems Chairman and Managing Director Mehul Choksi said.
Dealers are selling gold at a discount of Rs 175 for 10 gm.
The jewellery industry has welcomed the government's decision to ban old Rs 500 and Rs 1,000 notes, saying gold demand will rise as people will have more faith in the precious metal than the currency notes. But the unorganised builders and secondary (resale) property market would be adversely impacted.
Jewellers on Monday decided to continue their pan-India strike for an indefinite period against the Budget proposal.
The new Companies Act that came in to force qualified the money mobilised by jewellery companies as deposits and as a result they had to discontinue such schemes.
Non-resident Indians are bringing gold into the country by taking advantage of rules that allow each individual to carry 1 kg of the metal, helping traders cope with restrictions on imports during the peak wedding season.
Import in the first nine months of the current calendar year fell 20 per cent to 525 tonnes from 658 tonnes in the year-ago period.
Gold is currently ruling at Rs 30,050 per 10 grams.
In China, premiums fell to about $1.50 an ounce on Friday from $2-$3 an ounce.
According to World Gold Council (WGC), gold jewellery demand in India, the world's largest consumer, touched record 662.1 tonnes in 2014.
According to jewellers and MMTC-PAMP India, gold demand has picked up in the wake of good monsoon and favourable price levels. There was positive response and more footfalls.
Imports in 2016 expected to be lowest in 7 years but experts don't rule out a revival in demand if the yellow metal's price falls
The best way to curb gold demand is by reducing black money in circulation.
Govt restrictions on import biting deep; trade petitions for relief with units, workers idling.
Govt clamps have resulted in 93% decline in April-November
Supply through recycling of used gold declined to around 10 tonnes in the second quarter of the current calendar year.
A worker earns Rs 10,000-20,000 but in the past month earnings had dwindled to Rs 5,000-7,000.
By tying gold imports directly to export volumes, India is effectively trying to cap how much bullion can be brought into the country, tightening supplies and driving up local prices.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances