GJEPC asks government to reduce import duty on diamonds, gold, silver, and platinum in upcoming budget

The Gem and Jewellery Export Promotion Council has asked the government to reduce import duty on diamonds, gold, silver, and platinum in its upcoming budget to help the jewellery industry manage the current economic downturn and boost the country’s standing in the global market. 

“Gem and jewellery exports have been facing a challenging time on account of economic downturn in key export markets, geo-political concerns, supply and demand side constraints in global diamond industry, unavailability of precious metal in the country among others,” said GJEPC chairman Vipul Shah in a press release. “GJEPC’s pre-Budget proposals will facilitate easy access to raw materials for the industry especially for MSMEs. By introducing safe harbour rule for sale of rough diamonds in Special Notified Zones (SNZs), India can become a trading hub like Dubai and Belgium and our diamond manufacturers will not have to travel abroad to get access to these trading hubs. Also, it is estimated that total 60% of the rough diamonds traded through auctions in the world and bought by Indian manufacturers will come to India for trading.”
 
The GJEPC has proposed that the government facilitate the sale of rough diamonds in Special Notified Zones through the Safe Harbour Rule and allow globally recognised diamond broking/ trading houses such as Bonas and I Hennig to operate in SNZs. The traders’ body has requested the government to offer incentives for conducting downstream activities, such as diamond cutting and polishing, to add value and create employment opportunities. If the government reduced duties on cut and polished gemstones and precious metals, Indian businesses will have greater potential to boost exports, according to the GJEPC. 

“Introduction of ‘Diamond Imprest License’ or reduction of import duty on cut and polished diamond from 5% to 2.5% will help to cope up the impact of beneficiation [sic] policies undertaken in a number of natural diamond mining countries,” said Shah. “This will give India a level playing field with competing countries like China, Vietnam and Sri Lanka. We are hopeful that with the additional support of the Government in terms of reduction in import duty of precious metals and MOOWAR [Manufacture and Other Operations in Warehouse] scheme for gem and jewellery industry, the exports of gold jewellery will increase substantially in these challenging times.”