As its pre-budget suggestion, the Gem and Jewellery Export Promotion Council (GJEPC) has urged the Centre to introduce a jewellery repair policy to make India a global outsourcing service centre.
The apex body of gem and jewellery trade in the country feels it 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. At present, India has a miniscule 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 said in a release.
The introduction of a repair policy, it believes, will result in renowned brands setting their service centre in India which are currently in Dubai, Turkey, and Hong Kong.
“Keeping in view India’s inherent skill in making handmade jewellery, we believe that India will outperform in jewellery repair sector also. With this policy, India has the possibility of taking 10-20% of the world market share, which will bring in billions of dollars of business with high employment potential,” said Vipul Shah, Chairman, GJEPC.
The 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 requirements for repair from within the country which at present they are forced to do abroad.
For the Union Budget 2023-24, it has also recommended a series of suggestions across verticals of gem and jewellery, which it said would help in propelling the exports from the sector and achieve the goal of USD 55 billion in exports by 2025.
Among those, GJEPC has sought a reduction in import duty on gold, silver and platinum to 4 per cent, saying it believes that this import duty is draining the capital from the exporters and also is the generator of economic malpractices.
Moreover, it urged the government to abolish import duty on Lab Grown Diamond (LGD) seeds and introduce measures to make its manufacturing in India a leader in the same manner as diamantaires rein natural diamond processing sector.
Lab Grown Diamond seeds are thin slices of rough diamond and not cut or polished diamond, it is processed on a side to make the surface smooth to enable the diamond to grow on that surface.
“Seeds are so thin and range from 70 cents (5.68 mm) to 80 cents (5.93 mm) which are impossible to be used in jewellery. They are easily distinguishable from regular CPD; therefore, the duty on seeds may be abolished. This will help in the growth of lab-grown diamond industry in India manifold and also help them in reverse engineering the technology in future. The duty foregone for this will be miniscule,” GJEPC said.
The union government is in the process of finalising the Budget document to be presented on February 1.
Budget 2023 is likely to be the last full budget of the Modi government in its second term with the next Lok Sabha elections due in April-May of 2024.
The formal exercise to prepare the annual Budget for the next financial year commenced on October 10. (ANI)