The commerce ministry is mulling the establishment of a task force for the gem and jewellery industry to͏͏ address͏͏ the͏͏ challenges͏͏ faced͏͏ by͏͏ the͏͏ sector,͏͏ aligning͏͏ it͏͏ with͏͏ the͏͏ task͏͏ force͏͏ already͏͏ set͏͏ up͏͏ for͏͏ the͏͏ textile͏͏ sector.
The͏͏ proposal͏͏ follows͏͏ a͏͏ meeting͏͏ between͏͏ commerce͏͏ secretary͏͏ Sunil͏͏ Barthwal͏͏ and͏͏ members͏͏ of͏͏ the͏͏ Gem͏͏ &͏͏ Jewellery͏͏ Export͏͏ Promotion͏͏ Council͏͏ (GJEPC)͏͏ and͏͏ Bharat͏͏ Diamond͏͏ Bourse͏͏ (BDB).͏͏ He͏͏ was͏͏ accompanied͏͏ by͏͏ Santosh͏͏ Sarangi,͏͏ Director͏͏ General͏͏ of͏͏ Foreign͏͏ Trade.
Need͏͏ for͏͏ Policy͏͏ Support͏͏ and͏͏ Increased͏͏ Liquidity:
During͏͏ the͏͏ discussions,͏͏ GJEPC͏͏ and͏͏ BDB͏͏ leadership͏͏ emphasized͏͏ the͏͏ need͏͏ for͏͏ strong͏͏ policy͏͏ support,͏͏ increased͏͏ liquidity,͏͏ and͏͏ a͏͏ conducive͏͏ business͏͏ environment͏͏ to͏͏ boost͏͏ exports͏͏ and͏͏ reinforce͏͏ India’s͏͏ status͏͏ as͏͏ a͏͏ global͏͏ jewellery͏͏ manufacturing͏͏ hub.͏͏ These͏͏ concerns͏͏ arose͏͏ from͏͏ weak͏͏ demand͏͏ in͏͏ key͏͏ markets͏͏ like͏͏ the͏͏ United͏͏ States,͏͏ China,͏͏ and͏͏ West͏͏ Asia,͏͏ further͏͏ impacted͏͏ by͏͏ geopolitical͏͏ tensions͏͏ and͏͏ economic͏͏ challenges.
Continue͏͏ Exploring:͏͏ India’s͏͏ gems and jewellery exports dip͏͏ 13.44%͏͏ in͏͏ June͏͏ to͏͏ INR͏͏ 15,939.77͏͏ Cr:͏͏ GJEPC
The͏͏ industry͏͏ is͏͏ grappling͏͏ with͏͏ global͏͏ uncertainties͏͏ such͏͏ as͏͏ inflation,͏͏ rising͏͏ interest͏͏ rates,͏͏ and͏͏ the͏͏ effects͏͏ of͏͏ two͏͏ ongoing͏͏ conflicts.͏͏ Furthermore,͏͏ sanctions͏͏ on͏͏ Russia͏͏ have͏͏ disrupted͏͏ the͏͏ supply͏͏ of͏͏ rough͏͏ diamonds,͏͏ adversely͏͏ affecting͏͏ India’s͏͏ exports͏͏ of͏͏ cut͏͏ and͏͏ polished͏͏ diamonds.
Barthwal͏͏ stated,͏͏ “As͏͏ the͏͏ industry͏͏ confronts͏͏ challenges,͏͏ now͏͏ is͏͏ the͏͏ time͏͏ for͏͏ the͏͏ government͏͏ to͏͏ step͏͏ in͏͏ and͏͏ offer͏͏ support.͏͏ A͏͏ task͏͏ force͏͏ similar͏͏ to͏͏ the͏͏ one͏͏ established͏͏ for͏͏ the͏͏ textile͏͏ sector͏͏ can͏͏ be͏͏ instrumental͏͏ in͏͏ identifying͏͏ and͏͏ addressing͏͏ these͏͏ issues,͏͏ fostering͏͏ a͏͏ more͏͏ favourable͏͏ environment͏͏ for͏͏ businesses͏͏ and͏͏ enhancing͏͏ India’s͏͏ exports.”
Vipul͏͏ Shah,͏͏ Chairman͏͏ of͏͏ GJEPC,͏͏ remarked,͏͏ “By͏͏ collaborating͏͏ with͏͏ the͏͏ government,͏͏ we͏͏ can͏͏ build͏͏ a͏͏ more͏͏ sustainable͏͏ and͏͏ prosperous͏͏ future͏͏ for͏͏ the͏͏ gems͏͏ and͏͏ jewellery͏͏ industry.”
Call͏͏ for͏͏ Policy͏͏ Measures:
Shah͏͏ also͏͏ urged͏͏ the͏͏ commerce͏͏ secretary͏͏ to͏͏ consider͏͏ various͏͏ policy͏͏ measures,͏͏ including͏͏ extending͏͏ the͏͏ credit͏͏ period͏͏ for͏͏ importing͏͏ rough͏͏ diamonds͏͏ and͏͏ exporting͏͏ cut͏͏ and͏͏ polished͏͏ diamonds͏͏ to͏͏ between͏͏ 180͏͏ and͏͏ 365͏͏ days.͏͏ He͏͏ also͏͏ called͏͏ for͏͏ expanding͏͏ the͏͏ Interest͏͏ Equalisation͏͏ Scheme͏͏ to͏͏ encompass͏͏ all͏͏ exporters͏͏ and͏͏ extending͏͏ the͏͏ pre-shipment͏͏ and͏͏ post-shipment͏͏ credit͏͏ terms͏͏ to͏͏ 180͏͏ days.
Additionally,͏͏ GJEPC͏͏ sought͏͏ government͏͏ support͏͏ for͏͏ the͏͏ India͏͏ Jewellery͏͏ Park͏͏ Mumbai͏͏ (IJPM),͏͏ requesting͏͏ funding͏͏ under͏͏ the͏͏ TIES͏͏ Scheme͏͏ to͏͏ aid͏͏ in͏͏ developing͏͏ an͏͏ Incubation-cum-Testing͏͏ Centre,͏͏ an͏͏ Export͏͏ Promotion-cum-Display͏͏ Centre,͏͏ and͏͏ a͏͏ Central͏͏ Logistics͏͏ Hub.
