Gems & jewellery export in the on-going fiscal is likely to be $20 billion-$21 billion which is over 27 per cent lower than exports worth $29 billion the previous fiscal, according to estimates made by the Gems & jewellery Export Promotion Council (GJEPC).

Exporters are hopeful that pre-Covid-19 levels will be reached once the vaccine against the pandemic is out but they expect government support, primarily a reduction in import duties on raw materials, to beat competition and make larger gains.

Gem, jewellery exports plunge 82% as Covid takes heavy toll

“Exports from the sector have been around $11.5 billion so far. If we export $2 billion-2.5 billion every month now, we will end the fiscal with exports worth $20 billion-$21 billion,” said Colin Shah, Chairman, GJEPC, at a press conference on Monday. “Whether it is cut and polished diamonds, gold, silver or platinum, duties need to be lower for the industry to be competitive,” Shah said.

Shah added that he was hopeful that the government would do its best to consider the demand. “While I agree that the fiscal situation is not what it should be, the government recognises the importance of the industry, the jobs we create and the value addition we bring in,” he said.

GJEPC seeks sale of rough diamonds at special notified zone

Liquidity support

Making a case for reduction/removal of import duties for gold, Shah said that gold duty was brought in when fiscal deficit was high, but the situation has changed now. “There is a case for reduction of gold duty because oil import is low. In case of diamonds, the revenue government makes is minuscule. If you weigh both options, the amount of jobs that will be created if duties are reduced is very large. We are hopeful that the government will consider our demand. We are trying,” he said.

Now that the gems & jewellery sector had started seeing growth, it expected banks to support it with enough liquidity, exporters said.

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