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Context

• The Union Minister of Commerce & Industry announced the introduction of the Diamond Imprest Licence during the 40th edition of the India International Jewellery Show (IIJS) 2024.
• This event, organized by the Gem & Jewellery Export Promotion Council (GJEPC), is taking place at the Bombay Exhibition Centre (BEC), NESCO, Goregaon from 09th to 13th August 2024.

Benefits for MSME Exporters

• The Diamond Imprest Licence aims to support MSME exporters, who constitute a significant part of India’s gem and jewellery export sector.
• Under this scheme, diamond exporters with a specified export turnover threshold will be allowed to import at least 5% (previously 10%) of the average export turnover from the last three years.
• This measure is intended to create a level playing field for MSME diamond exporters and prevent the flight of investment to diamond mining destinations.

Impact on the Gem & Jewellery Industry

• Recent reductions in duty rates for Gold, Silver, and Platinum had negatively impacted the gem and jewellery industry and job creation.
• It is anticipated that gold and jewellery will increasingly move through official channels, potentially boosting job orders and offsetting export losses due to the global recession. Exporters are encouraged to stay optimistic.

Government Engagement with G7 and Other Initiatives

• The Indian Government is actively engaging with the G7 and EU Ministers on issues related to transparency, data protection, and costs.
• This is the first instance of India negotiating from a position of strength with the G7.
• Efforts are also underway to establish a diamond centre in Mumbai or Surat similar to Antwerp and to improve diamond segregation and traceability in collaboration with the De Beers Kimberley Process.

Free Trade Agreements (FTAs) and Investments

• The consultative process is crucial for achieving fair and balanced Free Trade Agreements (FTAs).
• Recent FTAs, such as the ECTA with Australia and the CEPA with the UAE, have protected sensitive sectors.
• The removal of double taxation for the Indian IT sector under the FTA with Australia and a commitment from Europe’s EFTA countries to invest $100 billion in India are notable achievements.

Focus on Value Addition and Innovation

• In response to the global recession, Indian exporters are advised to focus on value addition.
• The market now favors intricate products with diligent workmanship and bespoke handmade jewellery over high-cost items. Discerning customers continue to seek value for money.

About The Gem and Jewellery Export Promotion Council (GJEPC)

• The Gem & Jewellery Export Promotion Council (GJEPC), established by the Ministry of Commerce, Government of India in 1966, is one of several Export Promotion Councils (EPCs) created to boost India’s export sector as it began to engage with international markets post-Independence.

 READ ABOUT LAB GROWN DIAMOND: https://www.iasgyan.in/daily-current-affairs/lab-grown-diamond#:~:text=Like%20natural%20diamonds%2C%20India%20has,%2C%20and%202020%2D21%20respectively

 SOURCE: PIB

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