A new report by credit agency ICRA, quoted by Rough & Polished, claims that demand for gold jewelry in India is “likely to grow by 9% in value terms and 6% in volume terms” in 2017.
According to ICRA, the formalization of the jewelry sector, as well as a “better financing environment with enhanced access to gold metal loans” will “boost the performance of the sector”.
ICRA Senior Group Vice President Subrata Ray said: “Following the introduction of the GST it is envisaged that the net tax outgo will reduce by 1.0% for a retailer outsourcing jewellery manufacture and where input credit is availed; it will increase by 1.2% if credit is not availed. This will trigger the retailers to source from tax compliant suppliers and goldsmiths enabling them to claim input tax credit on jewellery and other services availed. The transition towards streamlining of the supply chain will be challenging with some temporary impact on demand”.
