17th September 2024, Bengaluru: In a significant move to address the concerns facing the gems and jewellery industry, Shri Sunil Barthwal, Commerce Secretary, Ministry of Commerce & Industry, proposed the formation of a task force during his visit to GJEPC’s Head Office in Mumbai on 14th September. This initiative mirrors the task force set up by the government for the textile sector. The Commerce Secretary was accompanied by Shri Santosh Sarangi, Director General of Foreign Trade.
Both high-ranking officials were warmly welcomed by Shri Vipul Shah, Chairman, GJEPC; Shri Kirit Bhansali, Vice Chairman, GJEPC; Shri Anoop Mehta, President, BDB; Shri Ajesh Mehta, Convener – Diamond Panel, GJEPC; Shri Milan Chokshi, Convener – Promotions & Marketing, GJEPC; Shri Mehul Shah, Vice President, BDB; and Shri Sabyasachi Ray, Executive Director, GJEPC.
During the discussions, the leadership of GJEPC and BDB emphasized the need for robust policy support, enhanced liquidity, and a favorable business environment to strengthen exports and solidify India’s position as a global hub for jewellery manufacturing. These concerns were driven by weak demand in key markets such as the United States, China, and West Asia, exacerbated by geopolitical tensions and economic challenges. The industry is currently navigating global uncertainties, including inflation, rising interest rates, and the impact of the two ongoing conflicts. Additionally, sanctions on Russia have disrupted the supply of rough diamonds, further impacting India’s exports of cut and polished diamonds.
Shri Sunil Barthwal , Commerce Secretary, MOC & I said, “As the industry faces challenges, now is the time for the government to step in and provide support. A task force in lines of the task force created for textile sector can play a crucial role in identifying and addressing these challenges, ensuring a more favourable environment for businesses and boosting of India’s exports.”
Shri Vipul Shah, Chairman, GJEPC remarked, “Sincere thanks to Shri Sunil Barthwal, Commerce Secretary for the proposal to form a G&J task force that could provide a platform to all stakeholders to come together and discuss solutions. By working collaboratively, we can create a more sustainable and prosperous future for the gems and jewellery industry.”
Shah also urged the Commerce Secretary to consider several policy measures, including extending the credit period for Import of rough and exports of cut and polished diamonds, for the next 180 to 365 days, expanding the Interest Equalisation Scheme to cover all exporters and extending the pre-shipment and post-shipment credit terms to 180 days.
Additionally, GJEPC requested government support for the India Jewellery Park Mumbai (IJPM), with funding under the TIES Scheme, to assist in the development of an Incubation-cum-Testing Centre, an Export Promotion-cum-Display Centre, and a Central Logistics Hub.
