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GJEPC Chairman Praveenshankar Pandya sets the correction and growth agenda for the G&J industry
Urges the MoF to aid the industry and stall the decline in unemployment

Praveenshankar Pandya, the newly elected Chairperson and Russel Mehta, Vice Chairperson of the GJEPC within a week of joining office have outlined the agenda for correction and growth in the G&J industry. At a press conference held in the city recently, the GJEPC leadership shared the 6 point reforms proposal being reccomended to the Govt that will help in curtailing further unemployment and stablise the sector.

The current massive downturn in the China, Eurozone and global gem and jewellery industry is severely impacting the demand and prices of polished diamonds and finished jewellery. For the first time ever, the import of rough diamonds, the only raw material required for diamond manufacturing has shown huge decline of around 26% during April-September 2015-16, in comparison to the same period last year. Due to lesser imports the number of one billion stones that are cut and polished by the Indian diamond industry is also getting downgraded by a corresponding 26. This in turn has impacted the livelihood of an estimated quarter million families of the 1 million workforce that was employed directly by the sector and may even create further unemployment in the sector.

Reiterating the need for Govt intervention and aid, Praveenshankar Pandya said, “This sector has been losing its competitive edge, particularly in the diamond trading segment to emerging global hubs like Dubai and China, besides the existing hubs of Antwerp and Israel, due to high interest costs and unstable taxation policies of Govt. which needs immediate change. A definitive and stable taxation regime will help India to attain the “DIAMOND TRADING HUB” status.”

Pre Budget Proposals for the year 2016-2017

In order to improve the situation for the gems and jewellery industry, the new team has come up with five pre-budget recommendations for the year 2016-17.

1.  Inclusion of Gems and Jewellery Sector under interest subvention scheme and Merchandise Export from India Scheme (MEIS)

2.  Introduction of Presumptive Taxation System for Indian Diamond Industry

3.  Abolition of MAT and DDT for gems and jewellery sector at SEZ

4.  Ensuring ready availability of Precious metals Gold/Silver/Platinum for small and medium exporters

5.  Special Notified Zone - The first one is set up, and the Government has agreed to tax modifications; however Legislative amendment in this regard needs to be carried-out and is expected to be promulgated through Finance Bill 2016. Certain other additional policy changes have also been suggested.

6.  Abolition of 2.5% import duty on cut and polished coloured gemstones

The GJEPC will now strive to set up an SEZ in Surat, pursue the setting up of the Common Facility Centres and through its subsidiary MY KYC Bank, which is expected to enhance transparency in dealings. The new team will also take forward ongoing CSR initiatives and extend relief to the drought affected families in Maharashtra.