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The Reserve Bank of India on Monday relaxed the norm for suppliers' and buyers' credit for importing rough, cut and polished diamonds for 180 days, from the existing 90 days, from the date of shipment.
Faced with a lot of difficulty in receiving foreign remittances for exports within 90 days from the date of shipment, the Gems and Jewellery Export Promotion Council (GJEPC) had urged the government to extend the period.
Welcoming the move, Vipul Shah, chairman of GJEPC, said: "The extension will boost exporters' sentiment. It was impossible for exporters to get credit on exported goods due to their inability to receive remittances within 90 days. The industry's structure is such where any credit period less than 180 days will hit exporters hard.After achieving the figure of $44 billion a few years ago, gems and jewellery export declined to $41 bn in 2013-14n which now the industry estimates to regain at $44 bn this year again."
