Correspondent
KOLKATA, July 10 2020 (HS): The Gem and Jewellery Export Promotion Council, one of the largest export oriented organisations in India, has urged the union government to introduce a dedicated system-driven Fast Track Customs Clearance of shipments for these precious goods and increased credit limit from banks.
Put forwarding their demands before Union Finance Minister Nirmala Sitharaman during a virtual meeting with her yesterday Council Chairman Colin Shah and Vice Chairman Vipul Shah said with e-commerce currently gaining momentum, a massive rise was now seen in online purchases and introduction of a supportive E- Commerce policy for the gem and jewellery sector would drive online jewellery purchases to a great extent.
We have also proposed direct sale of rough diamonds by miners in Special Notified Zones (SNZs) in India as currently rough diamonds were sent to SNZs only for viewing before they were sent to Dubai or Antwerp as their sales were not permitted in India, Colin Shah informed here Friday.
As the same goods were shipped back to India once again for sale, their costs were unnecessarily increased manifold, Shah said adding the Council had requested the Finance Minister that if customers in India choose to confirm their orders, an invoice could be made within the SNZ and miners could pay a turnover tax at the prevailing rate The gem and jewellery sector should also be granted the Priority Sector Status in order to bring in operational benefits to the sector, said Colin Shah.
About the availability of Bank Finance to the trade, Vipul Shah, Vice Chairman GJEPC informed the Finance minister that though the industry had the access to about Rs 66,580 crore of bank credit, it received only a limited financial support from the private banks.
Accordingly GJEPC had proposed that banks should follow all RBI circulars and notifications and they be directed not to withdraw the present credit limits rather increase it if possible. GJEPC has also urged to reduce polished diamond import duty from 7.5 to 2.5 per cent to help India to strengthen its status as a polished diamond hub, as all distribution would then be out of India, leading to increase in duty collection due to greater volumes”, Vipul Shah added.
Incidentally India imports almost one third of world’s gold bullion up to 900 tonnes. While one third of the gold imported is for non-productive investments the balance two - thirds are for consumption.