The Gems and Jewellery Export Promotion Council (GJEPC) has demanded cut in import duty on gold to 4 per cent from the current 10 per cent.
The sector contributes significantly in the country's overall exports. "We always propose cut in import duty on gold.
We take it up everytime...We are really a big user of gold and we need to be a big exporter of the gold jewellery," the official said.
About 80 per cent of the imported gold is consumed by the jewellery industry and India has one of the best artisans working in the sector.
"Why not we actually, freely import more gold and export value added gold products. If it happens, then sudden surge of gold imports from FTA (free trade agreement) countries will also stop," the official added.
PC Jewellers MD Balram Garg had said there has been a demand for a significant cut in the import duty as small exporters are facing huge problem in procuring gold.
India is the world's second biggest gold consumer after China. The import mainly takes care of the demand of the jewellery industry.
The Budget for 2018-19 will be unveiled on February 1.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Election Results for Lok Sabha Election 2019 will be out on May 23. Get the latest election news and live updates on ndtv.com/elections. Catch all the action on NDTV Live. Like us on Facebook or follow us on Twitter and Instagram for news updates from each of the 543 parliamentary seats for the election 2019