IBJA proposes establishment of GIFT Trade Centre in Gandhinagar 

Under the proposed model, jewellers from across India would converge at the GIFT Trade Centre, with oversight of goods and valuation to be conducted by the customs department and an assaying centre appointed by the IFSCA 

Ahmedabad: The Indian Bullion and Jewellers Association (IBJA) has put forth a proposal to establish a jewellery export facilitation centre at GIFT IFSC in Gandhinagar. This move is a bid by the association to strengthen India’s foothold in the global jewellery market. Sources privy to the development revealed that a formal proposal, outlining an estimated investment of Rs 500 crore for the proposed centre, named the GIFT Trade Centre, has been presented to the authorities of GIFT City. 

“The idea is to create a centralized platform where jewellers from all corners of the country can showcase their products to potential international buyers. It’s envisioned as a global hub for Indian jewellers to exhibit their designs and facilitate direct purchases,” disclosed a source from an International Financial Services Centres Authority (IFSCA) committee to TOI. 

Presently, Indian jewellers predominantly participate in exhibitions and trade events at the UAE Jewellery Centre. However, such transactions are subject to the duties and taxes of the host country. The proposed GIFT Trade Centre aims to address these challenges by providing a conducive environment for jewellery trade. 

According to data compiled by the Gems and Jewellery Export Promotion Council (GJEPC), exports of plain gold jewellery surged by a notable 61.72% to $6,792.24 million in the fiscal year 2023-24, compared to $4,199.96 million in FY 2022-23. 

Under the proposed model, jewellers from across India would converge at the GIFT Trade Centre, with oversight of goods and valuation to be conducted by the customs department and an assaying centre appointed by the IFSCA

A significant advantage of this facility is that buyers would be able to directly purchase jewellery from the jewellers without incurring Indian taxes. “They can then transport the purchased items to their respective countries through the airport’s green channel or logistics channels without encountering regulatory barriers as the trade occurs within a Special Economic Zone (SEZ) area,” explained the source. 

This initiative is anticipated to facilitate duty-free exports of gold equivalent to the sale value for Indian jewellers. Essentially, jewellers who sell gold would be eligible to receive a bullion depository receipt equivalent to the value of their sales, thereby incentivizing and simplifying jewellery exports. 

Retail Jeweller India News