Union Minister of Commerce & Industry, Shri Piyush Goyal, announced the introduction of the Diamond Imprest Licence at the 40th edition of the India International Jewellery Show (IIJS) 2024. This event was organized by the Gem & Jewellery Export Promotion Council (GJEPC) and was held at the Bombay Exhibition Centre (BEC), NESCO, Goregaon from August 9th to 13th, 2024.
Benefits for MSME Exporters
The Diamond Imprest Licence is designed to benefit Micro, Small, and Medium Enterprises (MSME) exporters, a significant portion of India’s gem and jewellery sector. This licence allows diamond exporters who meet a certain export turnover threshold to import at least 5% of the average export turnover from the previous three years. This policy aims to create a level playing field for MSME diamond exporters and prevent the flight of Indian diamantaires’ investments to diamond mining destinations abroad.
Impact of Duty Cuts on Gold, Silver, and Platinum
Shri Goyal highlighted the reduction in duty rates for gold, silver, and platinum in the Union Budget, which had initially impacted the gem and jewellery industry and its associated job creation. He noted that, as a result, more gold and jewellery would come through official channels, boosting job orders for India’s workforce. Despite a global recession, India’s domestic market remains robust and is rapidly expanding, offering some compensation for the downturn in exports.
Engagement with the G7 and FTA Discussions
The minister mentioned India’s active engagement with the G7, with several Union Ministers involved in ongoing negotiations. Extensive discussions with European Union Ministers and the Commissioner have been taking place, focusing on transparency, data protection, and cost issues. This marks a significant shift, as India is now negotiating from a position of strength with the G7 for the first time.
Plans for Mumbai or Surat as Diamond Centers
Shri Goyal expressed hope that Mumbai or Surat could develop a centre akin to Antwerp’s diamond hub. Discussions are underway with the De Beers Kimberley Process to develop mechanisms for diamond segregation and origin tracing. However, he noted the lack of existing technical mechanisms or protocols, emphasizing joint efforts to address these gaps.
Consultative Process for Free Trade Agreements (FTAs)
Shri Goyal outlined the consultative approach followed in negotiations for FTAs, noting the difficulty in predicting timelines due to the evolving nature of discussions. In past agreements like the ECTA with Australia and CEPA with the UAE, India has managed to safeguard sensitive sectors, ensuring a fair and balanced approach.
Removal of Double Taxation for Indian IT Sector in FTA with Australia
Regarding the FTA with Australia, Shri Goyal highlighted the removal of double taxation for the Indian IT sector. He also mentioned Europe’s EFTA countries (Switzerland, Iceland, Norway, and Liechtenstein), which have committed to investing $100 billion in India and creating one million jobs.
Emphasis on Value Addition by Indian Exporters
Shri Goyal urged Indian exporters to focus on creating high-value products amidst the global recession. He emphasized the demand for intricate, handcrafted jewellery showcasing exceptional artistry and craftsmanship, which offers discerning customers value for money.
Addressing Space Shortage for IIJS Premiere
Shri Goyal promised the gem and jewellery trade an alternative solution to address the space shortage faced by GJEPC’s IIJS Premiere. Plans are underway to create an additional 2 million sq. ft. of exhibition space for future events.
Training at SEEPZ’s Common Facility Centre (CFC)
The minister spoke about the Common Facility Centre (CFC) at SEEPZ, which currently trains 300 physically challenged individuals. The facility aims to train 1,500 special youngsters annually, providing placements through GJEPC’s extensive membership base.
Presence of Dignitaries and Industry Leaders
The session was attended by several dignitaries, including Chairman of GJEPC, Vipul Shah; Vice Chairman, Kirit Bhansali; Joint Secretary, Ministry of Commerce and Industry, Siddharth Mahajan; Zonal Development Commissioner, SEEPZ-SEZ, Mumbai, Dnyaneshwar B. Patil; Additional Director DGFT, R. K. Mishra; Convener of National Exhibitions, Nirav Bhansali; Executive Director of GJEPC, Sabyasachi Ray; and various members from the trade, gem and jewellery exporters, and media.
Chairman Vipul Shah’s Remarks
Vipul Shah, Chairman of GJEPC, praised the government’s initiatives, highlighting the impact of FTAs like the India-UAE CEPA, India-Australia ECTA, and India-EFTA TEPA. He noted a 40% growth in gem and jewellery exports to the UAE following the India-UAE CEPA, contributing to India’s vision of becoming a developed nation by 2047.
IIJS Premiere 2024: Showcasing “Brilliant Bharat”
Under the theme “Brilliant Bharat,” IIJS Premiere 2024 was held from August 8th to 12th at JIO World Convention Centre, Mumbai, and from August 9th to 13th at the Bombay Exhibition Centre. The show featured a total exhibition area of 135,000 sq. mt., accommodating over 3,600 stalls and 2,100 exhibitors. The event attracted more than 50,000 buyers from India and over 2,000 international buyers from 60 countries, with 15 international delegations from 13 countries participating.
About The Gem and Jewellery Export Promotion Council (GJEPC)
Established by the Ministry of Commerce, Government of India, in 1966, the GJEPC is one of several Export Promotion Councils aimed at boosting India’s export initiatives. Since its inception, the GJEPC has played a pivotal role in promoting India’s gem and jewellery sector in international markets, aligning with the nation’s broader economic aspirations.
Multiple Choice Questions (MCQs):
- What is the projected export target for India by 2047 according to Vipul Shah?
- a) USD 50 billion
- b) USD 75 billion
- c) USD 100 billion
- d) USD 150 billion
- Answer: c) USD 100 billion
- Which Free Trade Agreement resulted in a 40% growth in gem and jewellery exports to the UAE?
- a) India-Australia ECTA
- b) India-UAE CEPA
- c) India-EFTA TEPA
- d) India-US FTA
- Answer: b) India-UAE CEPA
- How many countries are participating in the international delegations for IIJS Premiere 2024?
- a) 10 countries
- b) 11 countries
- c) 12 countries
- d) 13 countries
- Answer: d) 13 countries
- What is the total exhibition area for IIJS Premiere 2024?
- a) 120,000 sq. mt.
- b) 135,000 sq. mt.
- c) 150,000 sq. mt.
- d) 165,000 sq. mt.
- Answer: b) 135,000 sq. mt.
- When was the Gem & Jewellery Export Promotion Council (GJEPC) established?
- a) 1960
- b) 1962
- c) 1966
- d) 1970
- Answer: c) 1966