COMMERCE SECRETARY DISCUSSES FORMATION OF TASK FORCE TO ADDRESS GEM & JEWELLERY INDUSTRY CHALLENGES

Welcome and Introduction

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.

Industry Challenges and Concerns

During the discussions, the leadership of GJEPC and BDB emphasized the need for robust policy support, enhanced liquidity, and a favourable 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.

Proposal for a Task Force

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 line with the task force created for the textile sector can play a crucial role in identifying and addressing these challenges, ensuring a more favourable environment for businesses and boosting India’s exports.”

Industry Response

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 the 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.

Support for India Jewellery Park Mumbai (IJPM)

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.

About The Gem and Jewellery Export Promotion Council (GJEPC):

The Gem & Jewellery Export Promotion Council (GJEPC), set up by the Ministry of Commerce, Government of India (GoI) in 1966, is one of several Export Promotion Councils (EPCs) launched by the Indian Government to boost the country’s export thrust, when India’s post-Independence economy began making forays in the international markets. Since 1998, the GJEPC has been granted autonomous status. The GJEPC is the apex body of the gems & jewellery industry and today represents 10000+ members in the sector. With headquarters in Mumbai, GJEPC has Regional Offices in New Delhi, Kolkata, Chennai, Surat and Jaipur, all of which are major centres for the industry. It thus has a wide reach and is able to have a closer interaction with members to serve them in a direct and more meaningful manner. Over the past decades, GJEPC has emerged as one of the most active EPCs and has continuously strived to both expand its reach and depth in its promotional activities as well as widen and increase services to its members.