Minister of State for Commerce and Industry Anupriya Patel says that gold import duty has been reduced to help the industry grow to the next level.
The Gems and Jewelery sector is one of the important sectors of the Indian economy, which contributes about 7 per cent to the GDP. It accounts for 10-12 per cent of the country’s total merchandise exports and is one of the leading sectors in terms of job creation, providing employment to 5 million skilled and semi-skilled people. Anupriya Patel said that she is happy to know that without domestic production of raw materials in the country, India has emerged as a leading country in the manufacture and export of diamonds as well as gold jewellery, silver jewellery, colored gems- It has also emerged as one of the largest exporters in other sectors of the industry like stones and synthetic stones. The gems and jewelery sector is a perfect example of the Prime Minister’s vision of ‘Make in India’.
Government has taken many important steps
The Minister of State for Commerce and Industry informed that the gems and jewelery sector has been one of the most affected sectors during the COVID-19 pandemic in India and its exports grew by (-) 98 per cent in April 2020 due to the complete lockdown situation in the country. Record decline was observed.
However, being the apex body of Gem & Jewelery exporters, GJEPC has taken prompt measures in terms of continuously interacting with the industry, understanding their requirements and working closely with the Government, in order to ensure that amidst the critical situation like COVID-19. The desired measures may also be taken to support the industry in sustaining, surviving and reviving.
As a result of such measures, the declining rate of Gems & Jewelery exports has been registered at (-) 72 per cent in Q1 and Gems & Jewelery exports declined to (-) 6 per cent in Q3 as compared to exports in Q4. The sector rapidly registered a positive growth of about 15 per cent.
This trend continued this year as well and gems and jewelery exports achieved the pre-covid level of exports of USD 9.2 billion in the first quarter of 2021-22.
On the policy front, the government has introduced several reforms, such as a revised gold monetization scheme, reduction in gold import duty, hallmarking, etc. which will help the industry grow to the next level.
Other issues raised by GJEPC and the industry from time to time are also being looked into and are expected to be resolved soon.
Anupriya Patel says that she is confident that this will not only help the industry to improve, but exports will also grow rapidly. This will help the industry to achieve the export target of USD 43.75 billion this year.
It will also help in achieving GJEPC’s target of taking gems and jewelery exports to USD 75 billion in the coming years.
With the support of the government, GJEPC organized various virtual trade events last year like Virtual Buyer Seller Meet, Virtual IIJS, Virtual International Gems & Jewelery Show (e-IGJS), India Global Connect, Webinars etc. These initiatives have helped the industry boom as the pandemic subsides and global markets open up.
Patel added, Gaining insight into the design would help. On the other hand, the show will cater to the sourcing needs of domestic and international buyers before the start of the festive season.
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