GJEPC calls on government to reduce import duties on diamonds, gold, silver and platinum in next budget

the Gems and Jewelery Export Promotion Council has asked the government to reduce import duties on diamonds, gold, silver and platinum in its next budget to help the jewelery industry manage the current economic crisis and boost position of the country in the world market.

“Gem and jewelry exports have faced a difficult time due to economic slowdown in key export markets, geopolitical concerns, supply and demand constraints in the global diamond industry, lack of availability of precious metals in the country, among others,” he said. GJEPC President Vipul Shah in a press release. “the GJEPC pre-budget proposals will facilitate access to raw materials for the industry, especially for MSMEs. By introducing a safe harbor rule for sale of rough diamonds in Special Notified Areas (SNZ), India can become a trading hub like Dubai and Belgium and our diamond manufacturers will not have to travel abroad to access these. malls. Furthermore, it is estimated that 60% of rough diamonds traded at auction in the world and purchased by Indian manufacturers will come to India for trade.”

the GJEPC has proposed that the government facilitate the sale of rough diamonds in Special Notified Areas through the Safe Harbor Rule and allow globally recognized diamond trading/broking houses, such as Bonas and I Hennig, to operate in the SNZ. the traders’ body has asked the government to provide incentives for carrying out transformative activities, such as diamond cutting and polishing, to add value and create employment opportunities. If the government were to reduce tariffs on cut and polished gemstones and precious metals, Indian companies will have greater potential to boost exports, according to the GJEPC.

“Introducing a ‘diamond advance license’ or reducing import duties on cut and polished diamonds from 5% to 2.5% will help address the impact of the benefit. [sic] policies undertaken in several natural diamond mining countries,” Shah said. “This will give India a level playing field with competing countries like China, Vietnam and Sri Lanka. We are hopeful that with additional support from the Government in terms of reducing import duties on precious metals and MOOWAR [Manufacture and Other Operations in Warehouse] “Scheme for gems and jewelery industry, gold jewelery exports will increase substantially in these difficult times.”