fbpx
Connect with us
RJI

Daily News

SEZs outshine DTA in gold jewellery export: GJEPC

Published

on

Gold jewellery export from domestic tariff area (DTA) has lost a major chunk of business to units located in special economic zones (SEZs) in the country due to export promotion scheme of the central government that allows duty-free import of gold bullion into the SEZ.

According to data compiled by Gems and Jewellery Export Promotion Council (GJEPC), India’s gold jewellery export from SEZs shot up by 82% to $5 billion during the period of April-October 2018 compared to $2 billion from DTA during the same period. Likewise, the total gold jewellery export from DTA during the same period. Likewise, the total gold jewellery export from India increased by 44% to $7.2 billion during the April-October 2018 period compared to $5 billion during the same period last year.

Industry sources said, SEZs in Mumbai and Cochin have the biggest share in gold jewellery export. In April-May period, Cochin SEZ alone accounted for $1.1 billion worth of gold jewellery export out of the total $1.6 billion exports reported from all the SEZs in the country. Cochin SEZ has highest share of gold jewellery export market at 89%, with the rest going to Mumbai and Surat.

The reason behind the current situation is scrapping of the the 80:20 rule by Narendra Modi government. Up to 80% of the gold imported could be sold in the country on the condition that 20% would be exported. The duty-free import of gold in SEZ was continued with the condition that none of the imported raw material will be diverted to DTA area.

“Earlier, majority of the units in SEZ used to retail from their factories in DTA. The 80:20 rule forced them to export out of their DTA units. However, export from DTA had gone up while the export from the SEZ was down before 2014. After the 80:20 rule was scrapped, the export of gold jewellery from SEZ picked up pace,” said diamond analyst Aniruddha Lidbide.

Courtesy: Times of India/ Image: DNA

Continue Reading

Latest News