GJEPC Discusses Trade Issues with Commerce & Industry Minister
April 07, 16(IDEX Online News) – The Gem and Jewelry Export Promotion Council, along with other industry export promotion councils, recently met with India’s commerce and industry minister Nirmala Sitharaman, according to a report on GJEPC.com.
The GJEPC chairman Praveenshankar Pandya raised critical issues affecting the industry with the minister. He said that with the exception of the financially disastrous year of 2008 the industry had registered steady growth, but 2015-2016 had shown a 15-percent decline in exports, as a critical slowdown had occurred in key markets.
Pandya said that the specific predicament of the diamond industry was that this sector is facing the challenge of extremely high inventory levels. He suggested that the government undertake certain initiatives to alleviate the burden. These included the attempts to level the playing field with regard to China and allow the industry to include the gems and jewelry industry in the Merchandise Exports from India Scheme (MEIS) as well as allowing goods to enter the country on a consignment basis for manufacturing.
Other suggestions asked that the government permit the sale of rough diamonds at the Special Notified Zone (SNZ) by implementing a 0.25 percent tax on sales turnover achieved at the SNZ by foreign mining companies, to roll back the highly controversial and unpopular 1 percent levy on all non-silver jewelry, to reduce export transaction costs that have recently seen a 20-percent increase and make duty-free gold available from nominated agencies.
According to the GJEPC report, the ministry has requested a further meeting with the organization to address the issues in more detail.