New Delhi, May 14 (PTI) The Congress on Friday termed Prime Minister Narendra Modi’s appeal to defer gold buying for a year a “death warrant” for the jewellery sector and demanded from the Centre an economic package for 3.5 crore people linked to the sector.
Addressing a press conference here, Congress general secretary Randeep Surjewala accused the Modi government of pushing the jewellery sector towards an “undeclared lockdown” with the appeal and the subsequent increase in import duty on gold and silver.
He said the sector contributes largely to the exports of the country, and feared the rise in duty from 6 per cent to 15 per cent on gold imports would lead to smuggling and illegal trade.
Surjewala termed the prime minister’s appeal an attack on India’s cultural heritage, social customs and religious traditions, as gold forms an integral part of them, and also serves as a safety net for millions of women.
He said that over 90 per cent of India’s jewellery trade operates through MSMEs and small jewellers, and nearly 3.5 crore people are dependent on the sector, including goldsmiths, traders, artisans and workers.
The Congress leader called the advisory “disastrous” and an attack on the livelihoods of backward communities and traditional artisans linked to the manufacture and trade of jewellery.
“We demand that the Modi government immediately announce a special economic relief package for 3.5 crore goldsmiths, traders, artisans and workers involved in the gold jewellery industry.
“The government should also consider starting domestic gold mobilisation and recycling and use of idle gold stocks and amend income tax provisions to permit households to lend gold to jewellers of their choice,” Surjewala told reporters.
The Congress will protest this “brutality” from Parliament to the streets, he said.
The Rajya Sabha member criticised the Centre’s May 13 decision to increase import duty on gold and silver from 6 per cent to 15 per cent, alleging that the move would both hurt legitimate jewellers and encourage gold smuggling networks.
Surjewala said the gems and jewellery sector contributes more than seven per cent to India’s GDP and accounts for nearly 12 per cent of the country’s exports, with over 85 per cent of exporters belonging to the MSME category.
Citing government data, he said 75,082 registered MSMEs shut down between the launch of the Udyam portal in July 2020 and August 15, 2025. He also referred to reports on the closure of around 18 lakh enterprises in the unorganised manufacturing sector between 2015-16 and 2022-23, affecting nearly 54 lakh jobs.
More than 35,567 MSMEs had closed till February 2025, resulting in the loss of employment for over three lakh people, he said.
He said government agencies seized more than 2.6 metric tonnes of gold during 2024-25, while industry experts estimate annual smuggling at 10 to 15 metric tonnes.
The Congress leader said the jewellery sector had already suffered due to demonetisation, excise duty measures, GST implementation and mandatory hallmarking norms.
Sharpening his attack on the prime minister, Surjewala recalled his election speech on April 22, 2024, in Banswara, Rajasthan, where he claimed that the Opposition would “snatch mangalsutras” from women, in contrast to his advice against gold purchase.
Surjewala asked whether the shutdown of enterprises had become the BJP’s new normal and whether the Centre had any compensation or rehabilitation plan for people dependent on the jewellery sector.
He asked why the government did not focus on domestic gold mobilisation and bullion banking instead of suppressing consumer demand.
The Congress also sought to know why the government and the Reserve Bank increased sovereign gold holdings from 794.64 metric tonnes in September 2025 to 880.52 metric tonnes by March 2026, while advising citizens to avoid buying gold jewellery.
Surjewala said he wonders whether the BJP intended to hand over the jewellery industry to large corporate groups by weakening small jewellers and artisans through higher duties and reduced consumer demand. PTI SKC VN VN
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.