Government looking at suggestions of gems, jewellery sector to boost manufacturing, exports

New Delhi: The government is looking at suggestions of the gems and jewellery industry such as setting up of common facility centres and facilitating shipments through e-commerce with a view to promote manufacturing and exports, sources said. The industry has also asked for extension of the interest subvention scheme to the entire gems and jewellery sector, and providing level-playing field to foreign mining companies to encourage them to start sales/auction of rough diamonds at special notified zones, they said.

The government has identified champion sectors including leather, gems and jewellery, renewable energy, pharmaceuticals and textiles, to provide hand-holding for investors with a focus on improving India’s manufacturing capabilities.

Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the industry holds huge potential to boost manufacturing and exports and certain suggestions have been made to the commerce ministry to further push the growth of the sector.

He said that for further easing the working capital financing, manufacturers and exporters should be permitted to import loose diamonds without duty and SEZ (special economic zones) manufacturers should be permitted to sell loose diamonds and jewellery from SEZ to the domestic market without any duties and taxes to contain slowdown.

“The industry has asked for increasing the subvention rate from 5 per cent to 7 per cent to protect the trade and forex (foreign exchange) earning of the country and for business fraternity to be competitive against other suppliers in the international market,” Sahai said.

Another industry expert said there is a need for implementation of a risk management system in precious cargo customs clearance centre, Mumbai, to ensure ease of doing exports and imports.

“We have also asked for facilitating setting up of more common facility centres (CFCs) and mega CFCs to enable MSMEs (micro, small and medium enterprises) to use capital-intensive modern technology,” the expert added.

The total gems and jewellery exports during 2019-20 dipped 8.91 per cent to Rs 2,51,096.30 crore from Rs 2,75,671.80 crore in 2018-19.

Gems and Jewellery Export Promotion Council Chairman Colin Shah has stated that given the potential, the industry needs urgent government attention and a special package to handhold exporters in these difficult times besides reviving sentiments.

Courtesy: Economic Times