New Delhi, India: Exporters of gems and jewelry urged the government on Sunday to include support measures like the elimination of import duties on raw materials for lab-grown diamonds and a policy on jewelry repair in the upcoming budget to promote the industry and increase shipments.
Presumptive taxation on diamond sales in special notified zones and the introduction of the proposed DESH bill, which aims to replace the current law for special economic zones, were also suggested by the industry.
According to the industry, in light of the high inflation, economic crisis in the US and Europe, and frequent lockdowns in China, the exports of diamonds and jobs in Surat have been affected.
The industry is seeking a kind of “diamond package” in the upcoming Budget. The threat of deposit depletion poses a threat to the conventional source of rough diamonds worldwide, which also contributes to the exponential rise in the cost of extraction. As a result, lab-grown diamonds have emerged as a viable alternative for businesses.
These man-made or lab-grown diamonds (LGDs) are produced under specific conditions in a laboratory employing cutting-edge technologies. They resemble natural diamonds in appearance, chemical composition, and optical properties. Seed is a crucial raw material that is used to make an LGD.
“It is anticipated that by 2025, LGD will have contributed 10% to global exports of jewelry and gems, posing the threat of driving economic expansion. Foreign exchange remittances will decrease as a result of a significant reduction in import dependence.
Colin Shah, the founder and managing director of Kama Jewelry, stated, “If the duty on seeds is abolished, employment opportunities shall also increase and ancillary areas as well shall see the creation of employment opportunities.” Additionally, he served as the gem and jewelry export promotion council’s former chairman.
Shah stated that countries like the United Arab Emirates, Hong Kong, and Turkey are India’s primary competitors due to their straightforward policy of reimporting jewelry for repair and sending it abroad.
“India unquestionably possesses the potential to become the global center of gem and jewelry repair. Large exporters will find it simple to open service centers in this country for the direct import and re-export of jewelry they exported abroad. He added that this will boost India’s exports, transfer technology, and create jobs.
Dinesh Navadiya, chairman of the Indian Diamond Institute in Surat, called for a diamond package. He said that the gem and jewelry industry wants the government to announce supporting measures for the industry in the coming budget because it has a lot of potential to create jobs and increase exports.
The council says that gems and jewelry exports reached USD 2.5 billion in November 2022, up from USD 2.4 billion the year before.
