GJEPC seeks Jewellery Repair Policy to make India a global outsourcing service centre

Import duty is draining off the capital from the exporters and is the generator of economic malpractices of all kinds, GJEPC added.GJEPC has also sought the re-introduction of a Diamond Imprest Licence to give the diamond exporters the leverage to cope with the beneficiation policies undertaken by major mining countries in Africa.

Gem and jewellery exporters have urged the government to introduce a jewellery repair policy to make India a global outsourcing service centre and boost the country's repair market share to 10-20 per cent.

This will increase India's market share in the global jewellery repair market, which is estimated to grow to around USD 5.75 billion by 2026, the Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.

At present, India has a marginal market share of just 3 per cent with a sale of USD 196.8 million while the US has around 30 per cent of the market, followed by China with a share of 9.2 per cent, GJEPC added.

''Keeping in view India's inherent skill in making handmade jewellery, we believe that India will outperform in the jewellery repair sector also. With this policy, India has the possibility of taking 10-20 per cent of the world market share, which will bring in billions of dollars of business with high employment potential,'' GJEPC chairman Vipul Shah said.

The introduction of a repair policy will result in renowned brands setting their service centre in India, which is currently in Dubai, Turkey and Hong Kong, among others. Import of all types of jewellery and their repair will involve technological upgradation of jewellery manufacturing in India. Also, this will help large exporters to service their customer's requirement for repair from India only, which they are now forced to do abroad. For the Union Budget 2023-24, GJEPC has sought a reduction in import duty on gold, silver and platinum to 4 per cent. Import duty is draining off the capital from the exporters and is the generator of economic malpractices of all kinds, GJEPC added.

GJEPC has also sought the re-introduction of a Diamond Imprest Licence to give the diamond exporters the leverage to cope with the beneficiation policies undertaken by major mining countries in Africa. The Diamond Imprest Licence in Foreign Trade policy was withdrawn after the import duty on CPD was abolished in 2009, GJEPC said. GJEPC opined that Indian diamond exporters above a certain export turnover threshold should be allowed to import at least 5 per cent of the average export turnover of the preceding three years. This will provide a level playing field for Indian MSME diamond exporters with that of their larger peers, it added.

Further, the Council urged the Union Finance Minister to abolish import duty on Lab Grown Diamond (LGD) 'seeds' and introduce measures to make the LGD manufacturing sector in India a leader in the same manner as diamantaires in the natural diamond processing sector.

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