An increase in import duty would hurt legitimate jewellers and encourage smuggling networks, says Congress leader Randeep Singh Surjewala
NEW DELHI — Senior Congress leader Randeep Singh Surjewala on Friday accused the Narendra Modi government of pushing the country’s jewellery sector towards an “undeclared lockdown” through its appeal against gold purchases and sharply increasing import duty on gold and silver
Addressing a press conference here at the AICC office the Congress general secretary and Rajya Sabha MP Surjewala pointed out that Prime Minister Modi had first raised fears during an election speech in Banswara, Rajasthan, on April 22, 2024, by claiming that the Opposition would “snatch mangalsutras” from women, and had later appealed in Hyderabad on May 10, 2026, asking people not to buy gold jewellery for one year.
Surjewala said gold jewellery forms an integral part of India’s cultural heritage, social customs and religious traditions, while also serving as an economic safety net for millions of women across the country. He said that over 90 per cent of India’s jewellery trade operates through MSMEs and small jewellers, with nearly 3.5 crore people dependent on the sector, including goldsmiths, traders, artisans and workers from villages to metropolitan cities.
Calling the government’s advisory against purchasing gold ornaments a “disastrous order” for the sector, the Congress leader alleged that it amounted to an attack on the livelihoods of backward-class communities and traditional artisan groups linked to jewellery manufacturing and trade. He further criticised the May 13 decision of the Centre to increase import duty on gold and silver from six to 15 per cent, alleging that the move would 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, the Congress leader said 75,082 registered MSMEs had shut down between the launch of the Udyam portal in July 2020 and August 15, 2025. He also referred to reports regarding the closure of around 18 lakh enterprises in the unorganised manufacturing sector between 2015-16 and 2022-23, affecting nearly 54 lakh jobs.
According to Surjewala, more than 35,567 MSMEs closed during 2024-25 till February 2025, resulting in the loss of employment for over three lakh people. He apprehended that additional pressure on the jewellery industry would worsen unemployment and economic distress.
Raising the issue of smuggling, Surjewala said government agencies had seized more than 2.6 metric tonnes of gold during 2024-25, while industry experts estimated annual smuggling at 10 to 15 metric tonnes. He alleged that the higher import duty would further incentivise illegal trade.
The Congress leader also said the jewellery sector had already suffered due to demonetisation, excise duty measures, GST implementation and mandatory hallmarking norms.
Surjewala posed five questions to the government, asking whether “enterprise shutdowns” had become the BJP’s new normal, whether the Centre had any compensation or rehabilitation plan for people dependent on the jewellery sector, and why the government had not focused on domestic gold mobilisation and bullion banking instead of suppressing consumer demand. He also questioned why the government and the Reserve Bank of India had 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.
Expressing concern, the Congress leader questioned 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.
Demanding immediate intervention, Surjewala called on the Centre to announce a special economic relief package for the 3.5 crore people associated with the gold jewellery ecosystem. He also urged the government to explore domestic gold mobilisation, recycling mechanisms, the use of idle gold stocks and amendments to income tax provisions to permit households to lend gold to jewellers of their choice.
Surjewala said the Congress would oppose what he termed the BJP government’s “anti-jewellery sector policies” both inside and outside Parliament.
