Ease of Doing Business for MSMEs: The government organisation to promote the Indian jewellery industry, Gem and Jewellery Export Promotion Council (GJEPC) has made an appeal to the centre to introduce a Jewellery Repair Policy for India to become a global outsourcing service centre, reported PTI.
The policy if well implemented has the potential to increase the country’s share in the repair market to 10-20 per cent, GJEPC, which was set up by the Commerce and Industry Ministry, said.
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Currently, India holds only three per cent share in the global jewellery repair market with sales worth $196.8 million while the United States has captured around 30 per cent of the market, followed by China with 9.2 per cent share. The proposed policy will improve India’s share in the global market to $5.75 billion by 2026, GJEPC said in a statement.
On benefits on the policy, GJEPC said that the polic will invite big brands to India for setting up their service centres which are currently situated in Dubai, Turkey and Hong Kong, among other countries. Moreover, the import of different types of jewellery and their repair will lead to technological upgradation of jewellery manufacturing in the country.
In addition, it will allow large exporters to meet the demand for repair from customers from India only instead of tapping foreign shores.
In the upcoming Union Budget due to be announced next month, GJEPC is also seeking a reduction in import duty on gold, silver and platinum to four per cent. Expressing concerns over high duty, the promotion council said that import duty is draining off the capital from the exporters and is leading to the rise of economic malpractices in the sector.
Besides, GJEPC also called for the re-introduction of a Diamond Imprest Licence to give diamond exporters the leverage to cope with the beneficiation policies undertaken by major mining countries in Africa. The Diamond Imprest Licence in Foreign Trade policy
The promotion council also demanded that Indian diamond exporters above a certain export turnover threshold should be allowed to import at least five per cent of the average export turnover of the preceding three years. Citing the reason behind its demand, GJEPC said that it will provide a level playing field for Indian MSME diamond exporters with that of the larger peers.
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GJEPC further urged the Union Finance Minister Nirmala Sitharaman to abolish import duty on Lab Grown Diamond (LGD) ‘seeds’. Not only this, measures to make manufacturing sector for LGD a leader in the country, just as diamantaires in the natural diamond processing sector were, was also requested.