Surat: The Gems and Jewellery Export Promotion Council (GJEPC) has submitted a slew of demands to the central government to save the sector from the current crisis.
According to GJEPC, in September, the gems and jewellery exports witnessed a decline of 21% and polished diamond exports decreased by almost 11% compared to previous year. It forecast that the export will further decline by 15% in October and that of polished diamonds.
The GJEPC stated that factors including devaluation of the rupee against dollar, increased duty on import of cut and polished diamonds, reduced bank finance, increased tax on gold, liquidity crunch and challenges at the customs and export credit guarantee corporation of India (ECGC) etc.
GJEPC fears that there is a possibility of business moving to other centres like Vietnam, China, Thailand, and Indonesia.
“The recent increase of customs duty on categories of diamond such as semi-processed, half cut or broken, and cut and polished coloured gemstone to 7.5% from 5% has hit the industry hard. The business will move to Vietnam, China, Thailand and Indonesia,” said an office-bearer of GJEPC.
Courtesy: Times of India
