Besides, they suggested that there should be a comprehensive gold policy including mining, gold metal loans and setting up of special economic zones for sale of rough diamonds by mining firms.
The suggestions, sources said, were made at a high-level meeting recently where government officials and industry leaders collectively made presentations before Prime Minister Narendra Modi on sector-specific strategies to push manufacturing as part of the 'Make in India' programme.
It was suggested that import duty on gold and silver be reduced to 2 percent from the current 10 percent, the sources said, adding that it is for the Finance Ministry to take a call on these issues in the forthcoming Budget in February.
In order to boost exports, it was suggested that import duties be reduced on processed pearls to 2.5 percent from 10 percent and tax on cut and polished coloured gemstones be removed, they added.

For defence and aerospace sectors, it was recommended to provide financial incentives like tax holidays and incentivisation for R&D activities.
As part of the short term (one year) initiative, sources said that it was also suggested to simplify and make defence procurement procedure time bound besides rationalising offset policy.
For basic metals, it was recommended that the customs duty on steel products be increased, while import duty be removed on raw materials or ores to boost manufacturing and attract investments.

Sources said stakeholders asked to exclude steel products from the proposed mega trade pact - Regional Economic Cooperation Agreement (RCEP) and anti-dumping and safeguard duties. These suggestions assume significance as the sectors were identified as focus segments in the 'Make in India' programme.

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