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Inputs for Gold Policy, From Deliberations of India Gold & Jewellery Summit 2017

Published Date : Dec 30, 2017

The purpose of the first ‘India Gold & Jewellery Summit’, organised by GJEPC (Gem & Jewellery Export Promotion Council) was to develop a plan of action to meet the targets set for vision 2022. It was unanimously decided that a Gold Policy should be developed towards this end. The deliberations of the Summit will go a long way in helping formulate the policy.

During the Gold Policy focus, the policymakers had valuable viewpoints, which took into consideration that CAD (Current Account Deficit) is no longer an issue, and that the Gems and jewellery industry contributes $30 million to India’s GDP, currently. Here is a summation of the views:

  • To bring 23000 tonnes of domestic gold into the financial system.
  • To bring into the industry, the 10000 tonnes or so of gold lying with the top 10 temples of the country.
  • To scale up the count of hallmarking centres in the country from the current 535 to 1000+ to secure consumer confidence.
  • India having more demand for the Italian designs, to develop MoU to bring Italian designs and manufacturing in India.
  • To develop India as a Gem & Jewellery tourism destination, for which GST refund counter to be set up at top 10 International Airport to provide refund of 3% GST to non-Indian Tourists.
  • To develop strong export strategy to meet the target of total exports of $20 billion by 2022 and $25 billion by 2025.
  • To set up jewellery parks across the country by way of SEZs and Jewellery SEZs with domestic access up to 30%
  • To develop facilitation centres across the country for MSME exports.
  • To provide factoring and ECGC facility to Gems & Jewellery Sector.
  • MEIS (Merchandise Exports from India Scheme) to be extended to the Gems & Jewellery Sector on value addition, which was never extended to Gem & Jewellery Sector,
  • Gold Coins with Ashoka emblem to be sold through MMTC and on e-commerce platforms like eBay, etc,
  • To set up India as a gold refining country following the international standards of refining and to register 10 refiners in phase 1.

In conclusion:

Before the financial crisis of 2008, the gems and jewellery sector used to be one of the flourishing export sectors of the country. Even within the domestic economy, the business was brisk and good. However, those trends got reversed in the aftermath of the 2008 crisis. So from an economically flourishing sector it became a low performing one. Since then the sector experienced substantial slowdown.

This is quite evident from the data as well. During the period between December '13 and March '14 the sector registered growth in employment by only 1,000; in the subsequent 2 quarters it added 7,000 and 8,000 job opportunities, before experiencing a job loss of 5,000 in the last quarter of the calendar year 2014. This also implied an overall addition of only 11,000 job opportunities in the sector during the period between December 2013 and December 2014.

The allocation rank of funds for gems and jewellery sector is 8 for skill building, as seen earlier. This is understandable, as the gems and jewellery craft requires a high level of skill. However, given the decelerating trends in the sector, probably a re-think on the allocation may be prudent in future.

The article is compiled by

Ashish Kalra

DGL |Chief Gemologist (DGLaboratories) |Head of Department (R&D, Diamond & Gemology) |

Master Trainer (GJSCI) | Lead Trainer (GJSCI) |

Dip.Gemmology (I.G.I)| D.G.(I.G.I, Antwerp)| G.R.S.S. (World Gold Council)|

GIA Diamond Graduate| Advance Gemology (GIA)| Pearl Grading (GIA)|

Gold Appraiser (Ministry of M.S.M.E, Govt of India)|

Call| 91-9811267001 |

Email | ashish@gemologyindia.com|

- By GemAtlas Team