GJEPC requests priority sector status for gem and jewellery industry

By

Isabelle Crossley

Published
Jul 8, 2020

The Gem and Jewellery Export Promotion Council has asked Union Finance Minister Nirmala Sitharaman to grant the gem and jewellery industry priority sector status, to increase its finance options. 

 
Citing that the gem and jewellery industry contributes around 13.75% of India’s merchandise exports, and employs over five million workers across the country, the GJEPC urged the government to grant the sector priority status, it announced on its website. Members of the GJEPC recently met with Sitharaman to discuss the way forward for the industry.
 
As priority sectors are industries named by the government and Reserve Bank of India as being especially important for the development of the country, banks are mandated to encourage their growth through offering credit. Making the gem and jewellery industry a priority sector would therefore increase the amount of financial credit available to businesses in the sector. 

The GJEPC told Sitharaman that the sector has great potential for employment generation, especially in micro, small, and medium enterprises, which make up around 90% of the industry, according to its website. The government has continuously stressed its commitment to MSMEs both in terms of their potential to contribute to the nation’s economic growth and the need to invest in the sector. 
 
The government also recently broadened its definition of MSME, but still has a turnover criterion for export sales. The GJEPC said that, as jewellery is a high-value business, even small businesses may exceed the limit and thus not be eligible for MSME benefits. The GJEPC believes that increasing credit flow to the gem and jewellery industry will facilitate an increase in exports and create jobs, it said.