Jewellers in India have gone on a strike despite incurring heavy losses. A latest estimate suggests all jewellery shop owners in India combined could be losing over Rs 15 crore per day according to the All India Gems & Jewellery Trade Federation.
The shutdown – which has entered its second week – is in protest of a tax of 1 per cent proposed in Budget 2016 by Finance Minister Arun Jaitley on purchases that cost above Rs 2 lakh.
In Mumbai’s Zaveri Bazaar, India’s biggest gold market, protesters gathered in large numbers on Wednesday wearing white cloth caps with the words ‘Roll-back Excise’ written in Hindi and English.
“Shops will remain closed until the government assures jewellers that the 1 per cent duty will be withdrawn,” said Director All India Gems & Jewellery Trade Federation, Bachhraj Bamalwa was quoted by news agencies as saying.
The All India Gems & Jewellery Trade Federation represents 300,000 jewellers and bullion dealers across India.
The strike means jewellers are missing out on higher gold prices, which have rallied 19% this year as demand for haven assets surges amid volatility in financial markets.
Most of the bullion markets and jewellery showrooms remained closed in major cities in keeping with the agitation
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