Policy to add lustre to gem and jewellery units

Industries in state welcome National Foreign Trade Policy

The gems and jewellery industry in the state has greeted the measures announced the National Foreign Trade Policy, saying they will boost growth in the local industry.

"The commerce and industries minister and his team needs to be complimented for the policy which will boost the Indian gems and jewellery industry. All the demands of the council have been included in the policy. The diamond industry is already at its pinnacle and needs no incentives," Sanjay Kothari, chairman, Gem and Jewellery Export Promotion Council (GJEPC) said on Tuesday.

While the policy stresses on the developmental requirement of the gems and jewellery industry, the major emphasis is on gold, silver and platinum.

"The policy will give an impetus to the overall trade. The needs of the industry have been duly considered," said Chandrakant Sanghvi, convenor, Gujarat region, GJEPC.

"Earlier, diamond cutting & polishing were bracketed in the processing industry. These have now been placed in the manufacturing sector. The diamond industry will be able to avail benefits such as income tax exemption," Sanghvi said.

"Earlier, manufacturing units, situated in special economic zones were barred from sending their goods outside the SEZ. This condition has now been lifted and the goods can be sent outside. This decision will benefit the diamond industry," he added.

Surat Diamond Association president Nanu Vanani termed the policy as forward-looking.

"The policy is very good. The government has announced various measures for promoting exports. The policy also stresses on development of SEZs. I am sure the gem & jewellery as well as the diamond industry will be greatly benefited from it," Vanani said.

A diamond industrialist of Surat, who refused to be named, also welcomed the policy.

"Earlier we had to pay duty to bring back exported jewellery rejected by clients. Because of this, most of the goods were never brought back. The government has affected certain changes in this regard in the policy. The merchants will now be able to re-import or bring back up to 2 per cent worth of the total jewellery that was exported by them, without paying any customs duty. This will help the industry is maintaining proper inventory," he said.

"Another welcome step is that merchants having license for import of rough diamonds can now import 18 or higher carat gold. This was not the case earlier as import of only rough powder was allowed with the said license. Another thing is that the industry can now import commercial samples, which could be diamonds or machinery or anything, valued up to Rs. 1 lakh, without paying any customs duty," he added.