The government has exempted state-owned companies such as MMTC and STC from mandatory supply of 15% of imported precious metals to exporters.
The Directorate General of Foreign Trade (DGFT) had made it mandatory for the nominating agencies such as MMTC, STC and MSTC Ltd to provide minimum of 15% of imported precious metals to exporters on a half-yearly basis.
"The changes would not have any major impact on the gems and jewellery sector," Gems and Jewellery Export Promotion Council (GJEPC) Chairman Rajiv Jain said.
He added, it is easier for an SEZ unit to import precious metals directly as it requires less paper work.
The imported precious metals are used in manufacturing of jewellery items meant for exports.
During April-December 2010-11, gems and jewellery exports jumped 41.03% to $27.5 billion compared to $19.5 billion in the same period last fiscal.
The UAE is the main destination for India's gems and jewellery, accounting for 31% of the total exports, followed by Hong Kong and the US.
The gems and jewellery exports sector employs about 1.3 million people.
