Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,913.455.3
Stock Analysis, IPO, Mutual Funds, Bonds & More

With little policy push, India fails to drive gem and jewellery exports

Policy support is crucial to ensure that exports remain competitive.

, ET Bureau|
Updated: Sep 11, 2019, 09.53 AM IST
0Comments
BCCL
Untitled design (5)
KOLKATA: The US-China trade war has benefited gem and jewellery expo rts from Thailand in the past seven months even as India, which cuts and polishes 14 out of 15 diamonds used globally, has not been able to enhance its share of overseas shipments. The Gem & Jewellery Export Promotion Council (GJEPC), India’s top industry body, believes a concerted policy push is needed to give the country a bigger share in the global trade.

“The absence of SEZ (special economic zone) policy, ecommerce policy and others are the reasons for which we are not being able to leverage the current spat between the US and China, while countries such as Thailand are increasing their exports,” said Colin Shah, vice-chairman, GJEPC. “In the past seven months, Thailand’s gem and jewellery exports have risen 29.3%. On the contrary, in the first four months of the current fiscal, our exports have fallen 8.48% in dollar terms.” To be sure, the Indian rupee has been among the worst performing Asian currencies in 2019.

The GJEPC vice chairman said that it has received feelers from Chinese jewellery manufacturers to set up base in India.

“Since the policies are not in place, they cannot set up units in India. We are taking up the issue with the government shortly. We have also been asking for an ecommerce policy for gem and jewellery exports,” Shah said.

GEMS

Policy support is crucial to ensure that exports remain competitive. “Countries such as Thailand or Vietnam are providing better business policies, which we are not being able to do,” said Shah. “In the past five years, our gem and jewellery exports have only dropped. The industry has been demanding for long that the SEZ policy and ecommerce policy be put in place.”

The SEZ policy mandates units to exit by surrendering the land given to them on lease without any premium, which the prospective manufacturers find difficult to accept. Another issue is that the units could be quite large and may not be able to engage completely in exports.

Also Read

Compulsory hallmarking to shield jewellery buyers

Paytm Gold can now be redeemed at jewellery stores

Gems, jewellery exports dip 7% in Apr-Aug

Why this Sharekhan analyst is bullish on jewellery and footwear stocks

Jewellery, apparel sales hit in Diwali amid slowdown: Report

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service