GJEPC gives growth prescription for jewellery sector

To boost domestic manufacturing and exports of gems and jewellery, industry body GJEPC today said the government in 2015 should implement seven key proposals including scrapping of import duty on cut and polished coloured gemstones.
The Gems and Jewellery Export Promotion Council (GJEPC) has submitted to the government a clutch of short-term proposals for implementation in the first year of 'Make in India' initiative.
"The sector's annual growth would increase by 25-30 per cent if the short-term proposals are implemented in 2015. The action plans were discussed in a recent workshop on 'Make in India' campaign," GJEPC Vice Chairman Pankaj Parekh said.

The proposals include abolition of import duty on cut and polished coloured gemstones from the existing 2.5 per cent level, hike in drawback rates for gold and silver in the backdrop of prevailing 10 per cent import duty and implementation of turnover-based taxation system for Indian diamond industry.
Other recommendations include implementation of 'Special Notified Zone' in Bharat Diamond Bourse under the supervision of GJEPC to facilitate smooth movement of rough diamonds on consignment basis by RBI-approved overseas diamond miners.
The industry body further said the government should include Gem and Jewellery Sector under Interest Subvention Scheme, separate 'ITC HS Code (export code)' for man-made diamond to protect the interest of natural diamond industry and expansion of skill development activities.

Recommending proposals for implementation in the next three years, GJEPC said, "The government may spearhead initiatives to legalise current mining activity through an appropriate licensing framework and develop a regulatory framework fir new mining and exploration."
It also suggested setting up of a convention centre in Mumbai, promotion of ties with jewellery centres like Italy and Turkey and tapping other potential markets for gems and jewellery products.