Policy measures announced by the government on Friday will help the gem and jewellery industry to achieve its set export target for 2008-09, Sanjay Kothari, chairman, Gem and Jewellery Export Promotion Council (GJEPC) said. The ministry of commerce and industry has set an ambitious target for 2008-09 and 5% world share by 2020. ?The gem and jewellery industry is undergoing a difficult phase and the policy announced on Friday will help enhance the business and drive growth in times to come,? he said.
The industry in the best of its ability will try to support and play an active role in achieving the same, he added. The Union minister of commerce on Friday announced enhanced incentive under the Focus Product Scheme and Focus Market Scheme for high-value manufactured products and exports for their sectoral growth. The major incentive announced for the sector includes the limit value of jewellery parcels for export through foreign post office (including via speed post) raised from $50,000 to $75,000 and the time period for re-import of branded jewellery remaining unsold has been extended from 180 days to 365 days. Also, the export of coloured gemstones on a consignment basis has now been allowed.
?These policy initiatives will facilitate the trade in supporting the commerce ministry to achieve its set target. In this difficult phase the policy announced on Friday will help enhance the business and drive growth in times to come,? he said. However, the industry is disappointed with some key recommendations not been considered by the commerce ministry, which were vital for the growth of the trade.
?The measures such as the industry had requested for introduction of Positive Value Addition for plain and studded precious metal jewellery in DTA and EOU owing to the phenomenal rise in gold prices (27% in 2007). In this regard no such change has been announced, he said. ?With regards to the auction of rough stones in India, we had requested to include the import of rough diamonds and coloured gemstones under the category of exemption from obtaining an IEC number,? he said.
The gem and jewellery industry, having established its predominant position in diamonds worldwide, is now integrating forward to become the world?s largest trading hub in gems and jewellery.