The Gem and Jewellery Export Promotion Council (GJEPC) has presented a series of pre-budget recommendations to Finance Minister Nirmala Sitharaman during a consultation held on 26 December in Delhi.
The proposals address industry challenges, aim to boost growth, and enhance the sector’s global competitiveness.
Key Recommendations
Safe Harbour Rule FAQs
Acknowledging the introduction of the Safe Harbour Rule for the trading of rough diamonds by foreign mining companies at Special Notified Zones (SNZs), GJEPC highlighted the need for further clarification. Chairman Vipul Shah noted that the Council has prepared a list of frequently asked questions (FAQs) to address ongoing queries from stakeholders and has requested their approval by the Finance Ministry.
Co-Funding for Diamond Promotion
In response to declining demand for natural diamonds amid global geopolitical challenges, GJEPC has initiated an international promotional campaign in partnership with diamond mining companies. The Council has contributed ₹15 crores through member crowdfunding and is requesting a matching grant from the government to support jobs, exports, and India’s diamond export market.
Infrastructure Development
GJEPC has outlined the need for improved infrastructure to facilitate growth in the sector. Key proposals include:
- Inclusion of Jewellery Parks in the Harmonised Infrastructure List: Projects include a large jewellery park in Mumbai, with additional developments planned in Meerut and Bangalore.
- Support for a Gem Bourse in Jaipur: GJEPC has proposed an Infrastructure Support Fund to establish the bourse, which is expected to bolster trade and create employment.
Platinum Jewellery Ecosystem
The Council proposed measures to strengthen the platinum jewellery market, including:
- Duty-free supply through nominated agencies.
- Introduction of a tariff rate for platinum.
- Duty drawbacks similar to those provided for gold and silver.
- Creation of a new Harmonised System (HS) code for gold-platinum alloys.
Industry Collaboration and Economic Contributions
GJEPC reaffirmed its commitment to collaborating with the Indian government to sustain the growth momentum of the gem and jewellery sector, which plays a significant role in the national economy.
Vipul Shah, Chairman of GJEPC, said, “We thank the Hon’ble Finance Minister for reducing the import duty on precious metals in the last budget, a move that has spurred unprecedented growth in the sector. This is evident from the multiple stock market listings of family-run jewellery businesses, the expansion of major retailers overseas, and the planned opening of 3,000 retail outlets in the next two years, creating lakhs of employment opportunities across the country.”
Shah further added, “We also thank FM for introducing the Safe Harbor Rule for sale of rough diamonds at SNZs by foreign miners. However, we request the issuance of FAQs on Safe Harbour Taxation.
Additionally, GJEPC has requested the FM’s support for co-funding global diamond promotion campaigns, the inclusion of jewellery parks in the harmonised infrastructure list, and an Infrastructure Support Fund to develop a Gem Bourse in Jaipur. Advancing a platinum jewellery ecosystem and expanding IJEX trading centres will further strengthen India’s global leadership while creating substantial employment opportunities.”
These recommendations aim to address immediate challenges faced by the gem and jewellery industry while supporting India’s role in the global jewellery market.
