In a notable advancement for India’s gem and jewellery industry, the Gem and Jewellery Export Promotion Council (GJEPC) has secured Authorised Economic Operator (AEO) status from the Ministry of Finance.
This status is expected to improve the efficiency of export operations and further enhance the sector’s competitiveness on a global scale.
GJEPC’s Advocacy Pays Off
Initially excluded from the AEO program, which was introduced in 2011 to streamline export operations and reduce costs across various industries, the gem and jewellery sector has now been included after persistent advocacy efforts by the GJEPC. This inclusion allows industry units to apply for AEO status, thereby gaining benefits such as reduced cargo release times and lower bank guarantees by 50%, ultimately promoting ease of doing business.
Response from the Industry
In response to achieving AEO status, the GJEPC organised an Outreach Program at the Bharat Diamond Bourse on March 18, 2024. The event was designed to inform stakeholders about the advantages of AEO status and saw a strong turnout, indicating keen interest in utilising these new benefits.
Asian Star became the first company in this sector to receive AEO status, with 20 more companies applying for the certification soon after. This quick uptake highlights the sector’s readiness to embrace opportunities for enhancing trade operations and supply chain security.
Economic Context and Future Outlook
The AEO status was granted at a time when the overall export figures for gems and jewellery had fallen by 14% to $32.28 billion from $37.74 billion over the last fiscal year. In contrast, gold jewellery exports increased by 17% to $11.23 billion, delighted by a substantial increase in exports to the UAE following a new free trade agreement. This segment alone demonstrates the potential positive impact of strategic international agreements and regulatory facilitation on trade.
This new status is expected to help mitigate some of the recent declines in export numbers by simplifying processes and bolstering the sector’s international trade capabilities. With the gem and jewellery industry playing a crucial role in India’s export economy, the Ministry of Finance’s move is viewed as supportive, aimed at strengthening the industry in the face of global market fluctuations.