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Govt halts implementation of revised jewellery export norms amid trade backlash 

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Govt halts implementation of revised jewellery export norms amid trade backlash 
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DGFT has granted the jewellery industry another month to present detailed data and justifications for process wastage and recovery at various stages of jewellery production 

New Delhi: Retracting from its initial resolve, the Indian government has decided to suspend the enforcement of recently revised norms governing wastage in gold, silver, and platinum jewellery exports until July 31, 2024. The decision follows after the swift opposition from the gems and jewellery sector, which alleged that the regulations were introduced without prior consultation. 

The Directorate General of Foreign Trade (DGFT) announced the suspension in response to representations made by the Gem and Jewellery Export Promotion Council (GJEPC), highlighting the adverse impact of the new standards on the industry, particularly on micro, small, and medium-sized enterprises (MSMEs) and handmade jewellery manufacturers. 

The DGFT has granted the industry an additional month to present detailed data and justifications for process wastage and recovery at various stages of jewellery production. This move aims to facilitate a more comprehensive understanding of the industry’s concerns and the potential ramifications of the revised norms. 

The controversy stems from the government’s notification on Monday, which outlined stricter limits on permissible wastage for different categories of jewellery. Notably, the wastage allowance for plain gold and platinum jewellery was slashed from 2.5% to 0.5%, while for studded jewellery, it was reduced from 5% to 0.75%. Similar adjustments were made for medals and coins, triggering alarm bells within the industry. 

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Industry insiders have expressed apprehension that the sudden reduction in wastage norms could severely disrupt the export of both plain and studded jewellery, impacting India’s position in the global market. The GJEPC has urged the DGFT to conduct a comprehensive study involving leading exporters in each category before finalising any revised norms. 

According to a report, some experts speculate that stricter regulations could incentivize the adoption of more efficient manufacturing practices, others caution that these changes might inadvertently inflate production costs, posing challenges for industry players. 

The suspension of the revised norms underscores the government’s willingness to engage with stakeholders and address their concerns. As the industry prepares to submit its detailed feedback over the coming weeks, the fate of the proposed regulations remains uncertain, with significant implications for India’s vibrant jewellery export sector. 

Retail Jeweller India News 

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