On December 26th, Vipul Shah, Chairman of the GJEPC, met with Hon’ble Finance Minister Smt. Nirmala Sitharaman in Delhi for a pre-budget consultation.
During the discussion, Mr. Shah made crucial proposals on behalf of the gem and jewellery sector to promote growth, improve global competitiveness, and solve the industry’s essential concerns.
Vipul Shah, Chairman of GJEPC, stated, “We thank the Hon’ble Finance Minister for lowering the import duty on precious metals in the last budget, which has resulted in unprecedented growth in the sector.” This is demonstrated by the various stock market listings of family-owned jewelry firms, the development of big retailers overseas, and the anticipated establishment of 3,000 retail stores over the next two years, providing lakhs of job possibilities across the country.”
Shah went on to say, “We also thank FM for introducing the Safe Harbor Rule for the sale of rough diamonds at SNZs by foreign miners.” However, we propose the publication of FAQs on Safe Harbour Taxation.
GJEPC has also proposed that the FM co-fund worldwide diamond promotion campaigns, including jewellery parks on the harmonized infrastructure list, and establish an Infrastructure Support Fund to construct a Gem Bourse in Jaipur. Developing a platinum jewellery ecosystem and expanding IJEX trading centres will reinforce India’s worldwide leadership while offering significant job possibilities.
GJEPC is still dedicated to working with the Government of India to ensure that the industry continues to contribute meaningfully to the country’s economy.
Key recommendations Submitted by GJEPC.
- GJEPC has expressed gratitude for the announcement of the safe Harbour Rule of taxes for foreign mining companies (FMCs) dealing rough diamonds at SNZ. However, GJEPC is receiving numerous inquiries from FMCs over its application. To answer these concerns, GJEPC has compiled a list of Frequently Asked Questions on the Safe Harbour Rule. Chairman Vipul Shah requested that it be studied and approved.
- Co-Funding for Diamond Promotion Campaign to Restore Sector Demand: GJEPC has started a global campaign to promote natural diamonds in partnership with top international diamond mining businesses and countries. This program intends to counteract the considerable headwinds that both diamonds experience as a result of geopolitical challenges.
GJEPC has already raised ₹15 crores through member crowdfunding for this campaign. However, in view of the continued issues, GJEPC has requested the Government’s assistance in these difficult times. The Council advocated acceptance of a matching grant for the generic promotion of diamonds in international markets in order to protect jobs, exports, and millions of livelihoods while maintaining India’s worldwide leadership in diamond exports.
- To realize the goal of a “Viksit Bharat,” the industry must establish a robust infrastructure. The Council, with industry backing, is constructing the world’s largest jewellery park in Mumbai, with similar parks opening in Meerut, Bangalore, and other cities. We propose including Jewellery Park on a standardized list of infrastructure to help the sector’s growth.
- In order to create an ecosystem for platinum, GJEPC proposed the inclusion of duty-free platinum supply through nominated agencies, the announcement of a tariff rate for platinum, the implementation of duty drawbacks similar to gold and silver, and the creation of a new HS Code for gold-platinum alloys.
Mr. Vipul Shah expressed optimism about the 2019 Union Budget, hoping that the Finance Ministry will implement these steps to keep India’s gem and jewelry business growing.