Gems and jewellery exports to touch $13 bn

THE KEY SECTORS

With the Foreign Trade Policy, 2004-2009 announcing special measures for the gems and jewellery sector, the industry expects exports to touch $13 billion this year and $16 billion by 2007.

"The special focus initiatives and duty free import entitlements of other metals and commercial samples provides relief to the traders and the export target of $16 to $18 billion by 2007 can be met easily," Sanjay Kothari, chairman of Gems and Jewellery Export Promotion Council, said.

The measures are also expected to generate more jobs with another 50,000 people likely to get gainful employment in the handcrafted and studded jewellery sections, Kothari added.

"The duty free import of consumables for metals other than gold and platinum, up to 2 per cent of free on board (FOB) value of exports and duty free re-import entitlement for rejected jewellery up to 2 per cent of FOB value of exports are also in line with our demands and will provide relief to the importers who were paying a hefty duty on re-importing rejected jewellery, Kothari said.

The council had also asked for cutting and polishing of gems and jewellery to be treated as manufacturing which has been addressed in the policy. The C&P sections will now get tax exemptions under Section 10(A) providing growth impetus to the sector, he said.