Gems export body expects $2 bn FDI

Gem and Jewellery Export Promotion Council (GJEPC) said it expects to attract foreign direct investment (FDI) worth $2 billion in this financial year besides a growth of 20-25 per cent.

"We are confident of bringing in FDI of $2 billion (in terms of working capital) this year," said Bakul Mehta, chairman, GJEPC.

The council is also targeting a growth rate of 20-25 per cent in exports during the current year as against the growth rate of 6.32 per cent in last fiscal, he said, adding that a combination of factors like government policies, the new foreign trade policy, the SEZ norms would help achieve us meet this growth rate.

The jem and jewellery industry witnessed a growth of only 6.32 per cent with total gem and jewellery exports reaching $16,669.11 million. Industry is in a stage of consolidation and the slow offtake in the US market due to high interest and high value of gold are the main reasons for the low growth rate this year, Mehta said.

There is a gem and jewellery SEZ coming up in Gujarat and another multi-product SEZ in Hyderabad.