NEW DELHI: The Gems and Jewellery sector is expecting exports to drop by about 30 per cent this financial year due to the pandemic and are seeking a reduction in import duties on raw materials in the Union Budget.
“Exports from the sector have been around $11.5 billion so far. If we export $2 billion-2.5 billion every month now, we will end the fiscal with exports worth $20 billion-$21 billion,” said Colin Shah, Chairman, Gems & jewellery Export Promotion Council (GJEPC) on Monday. Exports had stood at $29 billion in the previous fiscal. The industry expects exports to remain low until the vaccine arrives and has sought government support through an import duty cut.
“Whether it is cut and polished diamonds, gold, silver or platinum, duties need to be lower for the industry to be competitive,” Shah said. The sector accounts for 14 per cent of India’s exports and employs over 5 million.
GJEPC urged the government to reduce the import duty on cut and polished diamonds and semi previous stones to 2.5 per cent from the current 7.5 per cent, and slash import duty on precious metals to 4 per cent from 12.5 per cent. It also sought the removal of basic customs duty of 0.50 per cent on rough colour gemstones.