The Indian government accepted jewellers’ long-standing demand and introduced the Diamond Imprest Licence for the benefit of the industry. The announcement in this regards was made by Piyush Goyal, Minister of Commerce & Industry, Government of India, during his interactive session at the 40th edition of India International Jewellery Show 2024 (IIJS 2024), the flagship show of the Gem & Jewellery Export Promotion Council (GJEPC) held at the Bombay Exhibition Centre (BEC), NESCO, Goregaon.
The Diamond Imprest Licence will benefit MSME exporters, which comprise a large portion of India’s gem and jewellery exporters. GJEPC has been recommending this policy initiative for a long time. The Diamond Imprest Licence ensures that Indian diamond exporters above a certain export turnover threshold will be allowed to import at least 5%, (if not 10% as it was earlier) of the average export turnover of preceding three years.
This will provide a level playing field for Indian MSME diamond exporters with that of their larger peers. It will stop the flight of investment of Indian diamantaires to diamond mining destinations. It will give more employment in terms of diamond assorters and processing of semi-finished diamonds in the factories.
Goyal was addressing a packed house of gem and jewellery exporters in the presence of Vipul Shah, Chairman, GJEPC, Kirit Bhansali, Vice Chairman, GJEPC, Siddharth Mahajan, Joint Secretary, Ministry of Commerce and Industry, Govt. of India; Dnyaneshwar B. Patil – IAS, Zonal Development Commissioner, SEEPZ-SEZ, Mumbai; Shri R K Mishra, Additional DGFT; Shri Nirav Bhansali, Convener, National Exhibitions, GJEPC; Shri Sabyasachi Ray, ED, GJEPC, members from the trade, media, ladies and gentlemen. Manisha Gupta, Commodities Editor, CNBC TV18 Group was moderating this session with the Minister.
Goyal also promised the gem and jewellery trade that since GJEPC’s IIJS Premiere is facing shortage of space for exhibitors, he will think of a way to create 2 million square feet exhibition space for IIJS in the future. The minister said that the Union Budget had cut duty rates of gold, silver and platinum, which was hurting the vibrant gem and jewellery industry and job creation.
“Gold and jewellery will increasingly come through official channels and our workforce will get job orders. India’s domestic market is resilient and growing fast to compensate for the loss in exports due to global recession. I urge gem and jewellery exporters to be positive,” he said.
Goyal said, “Indian Government is engaging with G7 actively and several relevant Union Ministers are very much involved in negotiations. We have been having extensive discussions with EU Ministers and Commissioner. There are issues of transparency, data protection and costs. But this is the first time that India is negotiating from a position of strength with the G7.”
“We are hoping that Mumbai or Surat can have a centre similar to the one in Antwerp. We are also in talks in De Beers Kimberley Process to segregate diamonds and trace their origins. However, there is no technical mechanism and no protocol in this regard and we are jointly working towards this,” Goyal said.
Consultative process for trade agreements
“In terms of FTAs, we follow a consultative process. Many discussions are happening with developed countries and with continents. However, it is difficult to predict the timeline as discussions evolve over a period of time. In the case of ECTA with Australia and CEPA FTAs with the UAE, we were able to protect all our sensitive sectors. We conclude only once we have a fair, equitable and balanced approach unlike in the past,” Goyal said.
In the Free Trade Agreements with Australia, India got double taxation removed for the Indian IT sector. In case of Europe’s EFTA (Switzerland, Iceland, Norway and Liechtenstein), they have committed to invest $100 bn in India and create 1 million jobs.
“Indian exporters need to create greater degrees of value addition due to recession in developed countries. The world is not looking for high cost products or jewellery but intricate products with diligent workmanship, exquisite artistry and bespoke handmade jewellery. Discerning customers will always seek value for money,” Goyal said.
Vipul Shah, Chairman, GJEPC, said, “The government’s relentless dedication and visionary leadership have resulted in signing of FTAs like India-UAE CEPA, India-Australia ECTA, India-EFTA TEPA. It was on your insistence that a series of meetings with stakeholder and industry leaders were done to take industry onboard before finalising these FTAs. The India-UAE CEPA has resulted in a strong growth of 40% gem & jewellery exports to UAE. Sir, we are looking forward to the signing of India-UK, India-EU and India-Canada FTAs in near future under your leadership which will give exports a big boost. We are also encouraged with your renegotiations of old FTAs with ASEAN countries and more. “
The Common Facility Centre (CFC) at SEEPZ trains 300 physically challenged girls and boys as of now but this will impart training to 1500 special youngsters every year and will get placement from the 10,000 plus members of GJEPC.
Showcasing ‘Brilliant Bharat’ theme this year, IIJS Premiere 2024 show dates are: 8-12 August at JIO World Convention Centre, Mumbai and 9-13 August at Bombay Exhibition Centre, NESCO Goregaon, Mumbai. IIJS Premiere 2024 will have a total exhibition area of 135,000 sq. mt. (1.45 million sq. ft.), which is much higher than that of the prominent comparable shows in the western world.
With over 3,600 stalls and 2,100 exhibitors, IIJS Premiere is expected to attract over 50,000 buyers from across India and more than 2000 buyers from over 60 countries. This year, IIJS has 15 international delegations coming from 13 countries, underscoring the event’s global reach and impact. The countries include Cambodia, Iran, Japan, Malaysia, Nepal, Russia, Saudi Arabia, Sri Lanka, Thailand, Turkey, United Kingdom, Uzbekistan.
Concurrently, IGJME Premiere 2024 (Machinery and Allied Expo) is being organized from 9th to 13th August at the Bombay Exhibition Centre. IIJS Premiere will feature a wide array of products including diamond, gemstone, and studded jewellery, gold and gold CZ jewellery, lab-grown diamonds, high-end couture jewellery, silver jewellery and artefacts, colour gemstones and machinery, technology, and allied industries.
Shah further added, “IIJS contributes to India’s vision of becoming a Viksit Bharat by 2047. With determination and innovation, we aim to elevate our exports to an impressive USD 100 billion, helping to realize the dream of a prosperous and self-reliant India by 2047. IIJS Premiere continues to be instrumental in enhancing India’s position as a key player in the global gem and jewellery market.
