The commerce ministry is mulling to set up a task force for the gem and jewellery industry to address the challenges faced by the sector. This aligns with the task force that the government has set up for the textile sector.
The proposal comes after the commerce secretary Sunil Barthwal met the members of the Gem & Jewellery Export Promotion Council (GJEPC) and Bharat Diamond Bourse (BDB). The commerce secretary was accompanied by Santosh Sarangi, Director General of Foreign Trade.
During the discussions, the leadership of GJEPC and BDB emphasized the need for robust policy support, enhanced liquidity, and a favourable business environment to strengthen exports and solidify India’s position as a global hub for jewellery manufacturing. These concerns were driven by weak demand in key markets such as the United States, China, and West Asia, exacerbated by geopolitical tensions and economic challenges.
The industry is navigating global uncertainties, including inflation, rising interest rates, and the impact of the two ongoing conflicts. Additionally, sanctions on Russia have disrupted the supply of rough diamonds, further impacting India’s exports of cut and polished diamonds.
Barthwal said, “As the industry faces challenges, now is the time for the government to step in and provide support. A task force in line with the task force created for the textile sector can play a crucial role in identifying and addressing these challenges, ensuring a more favourable environment for businesses and boosting India’s exports.”
Vipul Shah, Chairman, GJEPC remarked, “By working collaboratively with the government, we can create a more sustainable and prosperous future for the gems and jewellery industry.”
Shah also urged the commerce secretary to consider several policy measures, including extending the credit period for the import of rough and exports of cut and polished diamonds, for the next 180 to 365 days, expanding the Interest Equalisation Scheme to cover all exporters and extending the pre-shipment and post-shipment credit terms to 180 days.
Additionally, GJEPC requested government support for the India Jewellery Park Mumbai (IJPM), with funding under the TIES Scheme, to assist in the development of an Incubation-cum-Testing Centre, an Export Promotion-cum-Display Centre, and a Central Logistics Hub.
