At the same meeting at which The Gem & Jewellery Export Promotion Council announced the annual performance of the gems and jewellery sector, GJEPC Chairman Praveenshankar Pandya and Vice Chairman Russell Mehta also outlined various proposals to counter specific   challenges confronting the g & j industry.

The first important proposal was for that of interest subvention for the diamond sector. Dwelling on the difficulties faced by the diamond manufacturers in the past year Pandya said: “Increased financial cost or inventory carrying cost has become unbearable. Interest Subvention is the need of the hour!”

Reflecting upon another facet to the difficulties faced by the industry,  Mehta pointed out that as all dealings in this industry are conducted in US dollars, the strength of this currency was adding further to the challenges faced by the industry. “Though the USA may account for 40% of the market, consumers in the other 60% of the market – comprising    various countries - are faced with the depreciation of their local currencies and this has meant that for the same amount of money in their local currency, they cannot buy the same amount of goods as before.”  This has also added to depressing demand.  

The other area of concern raised by the Chairman  was the question of availability of gold for jewellery manufacturers in the Domestic Tariff Area (DTA) particularly those in the medium and small scale   sector; and those in smaller cities and towns. “There is no credible gold policy,” said Pandya. “Manufacturers outside SEEPZ and the SEZs do not have access to duty free gold, even though they are also exporters.” The Replenishment Scheme too, is not operational he pointed out.

Pandya noted  out that though exports from SEZs had actually increased, the sharp drop of exports from the  DTA had actually pulled the overall figure into the negative zone.

“We are now the fourth largest manufacturer of gold jewellery,” Pandya said. “And we aim to become the largest manufacturer in this segment, But, in order to achieve this, it is imperative that we put a proper gold policy in place.” He also cautioned that in the absence of this,   centres like Dubai – with their excellent infrastructure and their quick response on creating a positive business environment  are setting up jewellery manufacturing  and in no time would emerge as serious players.

“We have taken up the issue with the Ministry of Commerce, and we are confident that an effective gold policy will soon be formulated” Pandya stated.

With relation to exports of jewellery, another challenge highlighted by Pandya was the duty charged by USA on imports of jewellery from India.  He said the GJEPC had requested the Ministry of Commerce to find a way to solving this issue.

Apart from the request for interest subvention and a gold policy, the GJEPC has two more major proposals which they feel will help boost gems and jewellery  industry and exports out of the country.

Explaining the first of these proposals, Vice Chairman Mehta said: “Currently the Government of India policy for cut & polished diamonds is focussed on the business model. We have to buy rough, cut and polish it and sell it off. This model assumes that the manufacturers take the risk of doing business. We are now proposing that rough diamonds be allowed into the country on a consignment basis. So that companies from other countries can utilise the infrastructure that we have set up here to undertake the manufacturing. In other works, we propose that we are allowed to do job work for other enterprises.” This way he explained, the Indian businesses will not have to undertake the risk, yet they would be able to add value generate employment.

The other proposal was for the GoI to formulate a policy for  Jewellery Parks across the country. The GJEPC has proposed, for example, that one such park be set up in the  Thane-Belapur area on the outskirts of Mumbai, where the jewellery manufacturers currently   in Zaveri Bazaar could be re-located. It is also proposed that such Jewellery Parks should have full infrastructure along with necessary facilities like banks, gold supplying agencies etc located within the Park. This would lead to the technical upgradation of the facilities, allow workers to work in a modern and more conducive environment; all resulting in higher efficiencies and a better work culture.

 Pandya also said that the GJEPC is planning to join forces with Diamond Producers Association (DPA) and other organisations  for the generic promotion of diamonds which was the need of the hour. He said that the Council would also be committing funds to the effort.

The Chairman  spoke briefly about the excise issue as well. Pandya said that he had taken the initiative to call an All India Jewellers Meet  at which a 20-member committee was formed to ensure a co-ordinated response to the excise issue and to interact with the committee set up by the GoI.   “There should be some consultative process when a change of such magnitude is sought to be introduced when for  decades  an industry has not been subject to such a duty,” Pandya commented.    

In reply to a question on the status of the SNZ, the chairman also lamented that a suitable taxation policy had not been introduced yet for the zone.  

Pandya concluded by stressing on the importance of “Ease of doing Business” for the sector. If correct policies were in place and there was an enabling environment he said, the gems and jewellery sector could emerge as an even stronger player. “In the last four decades, without any production of rough diamonds, India has emerged as the leader in diamond manufacturing and export, an ideal example ‘Make in India’, the vision of Honorable PM Shri Narendrabhai Modi,” he said.  “We can do the same in the jewellery field as well.”