Newly elected Chairman of GJEPC, Praveenshakar Pandya and Vice Chairman, Russell Mehta today addressed a Press Conference where they shared the strategy and policy recommendations of the new team to restore the health of the gems and jewellery industry.

A presentation made on the occasion summed up the challenges before the industry as: low demand and prices for diamonds and jewellery; strong prices of rough diamonds; both resulting in prolonged pressure on profitability. For the first time too, imports of rough diamonds have gone down by about 26%, the presentation said. The resultant fall in number of stones being polished has led to unemployment and impacted about a quarter million families of the roughly one million workforce. It has also led to an erosion of capital of the entrepreneurs in the sector and a build-up of inventory.

It is also the GJEPC’s contention that the diamond sector has been losing the edge to other centres, particularly in trading due to high cost of finance and unstable policies of taxation.

In order to improve the situation for the gems and jewellery industry, the new team has come up with five pre-budget recommendations for the year 2016-17. These are:

1.            Inclusion of Gems and Jewellery Sector under interest subvention scheme and Merchandise Export from India Scheme (MEIS)

2.            Introduction of Presumptive Taxation System for Indian Diamond Industry

3.            Abolition of MAT and DDT for gems and jewellery sector at SEZ

4.            Ensuring ready availability of Precious metals Gold/Silver/Platinum for small and medium exporters

5.            Special Notified Zone - The first one is set up, and the Government has agreed to tax modifications; however Legislative amendment in this regard needs to be carried-out and is expected to be promulgated through Finance Bill 2016. Certain other additional policy changes have also been suggested.

6.            Abolition of 2.5% import duty on cut and polished coloured gemstones

The GJEPC will now strive to set up an SEZ in Surat, pursue the setting up of the Common Facility Centres and through its subsidiary MY KYC Bank, which is expected to enhance transparency in dealings. The new team will also take forward ongoing CSR initiatives and extend relief to the drought affected families in Maharashtra.