Commerce secretary proposes task force to tackle challenges in gem & jewellery industry 

Government initiative aims to bolster sector amid global uncertainties 

Mumbai, 16th September 2024 — In a strategic move to address the pressing issues facing the gems and jewellery industry, Sunil Barthwal, commerce secretary of the Ministry of Commerce & Industry, proposed the formation of a dedicated task force during his visit to the Gem and Jewellery Export Promotion Council (GJEPC) head office in Mumbai on September 14, 2024. This proposal mirrors a similar initiative established for the textile sector. 

Accompanied by Santosh Sarangi, Director General of Foreign Trade, Barthwal was greeted by a host of industry leaders, including Vipul Shah, chairman of GJEPC; Kirit Bhansali, vice chairman of GJEPC; Anoop Mehta, president of the Bombay Diamond Bourse (BDB); and other key figures from the GJEPC and BDB. 

The discussions highlighted critical issues faced by the industry, including weak demand in major markets such as the United States, China, and West Asia. These challenges are compounded by geopolitical tensions, economic uncertainties, and the impact of ongoing conflicts. Additionally, sanctions on Russia have disrupted the supply of rough diamonds, further affecting India’s exports of cut and polished diamonds. 

Sunil Barthwal emphasized the importance of government intervention to support the sector, stating, “As the industry confronts various challenges, it is crucial for the government to step in. A task force, akin to the one created for the textile sector, could play a pivotal role in identifying and addressing these issues, creating a more favorable environment for businesses, and boosting India’s exports.” 

In response, Vipul Shah expressed gratitude for the proposal, noting, “This will provide a platform for stakeholders to collaborate and develop solutions, fostering a more sustainable and prosperous future for the gems and jewellery industry.” 

Shah also urged for several policy measures, including extending the credit period for the import of rough diamonds and the export of cut and polished diamonds from 180 to 365 days. He recommended expanding the Interest Equalisation Scheme to cover all exporters and extending pre-shipment and post-shipment credit terms to 180 days. 

Additionally, GJEPC sought government support for the India Jewellery Park Mumbai (IJPM) through funding under the TIES Scheme. This support would aid in developing an Incubation-cum-Testing Centre, an Export Promotion-cum-Display Centre, and a Central Logistics Hub. 
 
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