The Indian government is being urged to adopt a raft of measures to benefit its gem and jewelry industry, which has been badly hit by a global downturn in demand.
The GJEPC (Gem and Jewellery Export Promotion Council) is calling for the introduction of a safe harbor rule in SNZs (Special Notified Zones) that would allow direct sales of rough diamonds, rather than just viewing sessions, as is currently the case.
It is also calling for a re-introduction of the diamond imprest license to ease the movement of cut and polished diamonds across borders, and a reduction on gold, silver and platinum duty (currently 15 per cent, 10 per cent and 12.5 per cent respectively) to flat rate of 4 per cent.
The GJEPC presented a detailed set of proposals to Union Finance Minister Smt. Nirmala Sitharaman ahead of the 2024 budget next month.
India’s latest export figures show that revenue for the gems and jewelry sector slipped 6 per cent year-on-year in April to $2.48bn. Exports of polished diamonds were down 15 per cent to $1.47bn (May figure).
“The Indian gems and jewellery industry contributes around 10% to India’s total merchandise exports,” said Shri Vipul Shah, chairman of the GJEPC.
“However, the industry is currently facing some challenges due to the geopolitical scenario, the emergence of the beneficiation scheme, and issues related to rough diamond sourcing.”
He said the measures he was requesting were “crucial to give a competitive edge to our players and boost exports and at the same time generate employment in the sector”.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
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