India's Diamond Industry Calls for Budget Breaks

By John Jeffay / January 21, 2024 / www.idexonline.com / Article Link

(IDEX Online) - India's diamond industry is calling on the government to introduce for a range of tax and other breaks in its upcoming budget to ease the importation of rough stones.The Gem & Jewellery Export Promotion Council (GJEPC) wants a safe harbour rule for the sale of rough diamonds in Special Notified Zones (SNZs).It is also seeking the introduction of a Diamond Imprest License or the halving of the import duty on cut and polished diamonds from 5 per cent to 2.5 per cent in the Union Budget, which takes place on 1 February.The GJEPC says the industry needs strategic policy intervention to remain competitive in the international market.Vipul Shah, GJEPC chairman (pictured), said: "Gem and Jewellery exports have been facing a challenging time on account of economic downturn in key export markets, geo-political concerns, supply and demand side constraints in global diamond industry, unavailability of precious metal in the country among others. GJEPC's pre-Budget proposals will facilitate easy access to raw materials for the industry especially for MSMEs.India's gem and jewelry industries employ 4.3m people and account for 10 per cent of the country's merchandise exports.

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