GJEPC confident jewellery exports will flourish post-pandemic, makes recommendations for Union Budget

By

Isabelle Crossley

Published
Jan 19, 2022

The Gem and Jewellery Export Promotion Council announced it believes the Indian gem and jewellery industry can reach its export targets if the government favours the industry in its upcoming Union budget. 

“We now target to achieve $100 billion exports when India will observe the centenary of its independence,” said the GJEPC’s chairman Colin Shah in a statement, the GJEPC reported on its website.

“To kickstart the same we appeal to government to announce a special package for gem and jewellery sector in the forthcoming Union budget. Such favourable export and domestic policies would help elevate the gems and jewellery exports sector and lay a foundation for the quantum growth.”

For its proposed gem and jewellery package, the GJEPC has asked the government to reduce import duty on gold and other precious metals to 4% and reduce import duty on cut and polished diamonds from 7.5% to 2.5%, as part of its official state budget for the 2023 financial year. The GJEPC also suggested launching a ‘Tax Refund to Tourist’ scheme in India, permitting sale of rough diamonds in a Special Notified Zone in Mumbai, and allowing exporters to import 10% of the total cut and polished diamonds exported at nil duty, among other recommendations. 
 
Shah stated that reducing import duty on diamonds will, “help the Indian diamond industry to remain as the largest diamond producer.” Moreover, Shah opined that reducing import duty on precious metals will help India in its goal of becoming the world’s largest jewellery exporter. 
 
“India is the fifth largest exporter of gems and jewellery, contributing 5.8% of the global gems and jewellery exports demand of $629.06 billion,” said Shah.

“India is emerging as a potential global leader in jewellery exports due to the sheer talent pool and expertise the country has developed over decades of hard work. Post-pandemic, in the 75th year of India’s independence, the Amrut Mahotsav, it’s a new beginning for the industry and we will achieve the target of $41 billion as set for this sector by honourable Prime Minister as part of overall target of merchandise exports of $400 billion.”