India’s Exports of Gems and Jewellery increased 9.85% to USD 43,156.21 mn in FY17 (provisional data in April 2016 to March 2017) vis-a-vis USD 39,244.29 mn in FY16 (April 2015 to March 2016). Gross exports of cut and polished diamonds in FY17 increased to USD 22,783.81 mn witnessed a growth of 10.24% in FY17 as compared to USD 20,667.79 mn in FY16.
The Gem & Jewellery Export Promotion Council (GJEPC) sponsored by the Ministry of Commerce & Industry, Government of India (GoI) released annual export performance report for FY2017 in the presence of Mr. Praveenshankar Pandya (Chairman, GJEPC) and Mr. Sabyasachi Ray (Executive Director, GJEPC).
Exports of gold jewellery increased to USD 8,721.81 (up 1.92%) in FY17 as compared to USD 8,557.26 mn in FY16. Exports of silver jewellery increased to USD 4,020.62 mn (up 35.83%) in FY17 as compared to USD 2,960.04 mn in FY16. Exports of coloured gemstones dropped 3.08% to USD 419.9 mn in FY17 as compared to USD 433.18 mn in FY16. Exports of Rough Diamond (quantity in lakh cts) increased to USD 1,500.30 mn (up 28.24%) from USD 1169.95 mn in FY16.
In FY17, gems & jewellery exports of USD 43,156.21 million accounted for 15.72% of the country’s cumulative exports of US$ 274.65 billion ranking the gems & jewellery sector as one of the leading foreign exchange earners for the country.
Mr. Praveenshankar Pandya, Chairman, GJEPC, said, “Prime Minister Shri Narendra Modi, in his special live video message, congratulated GJEPC on our 50th Anniversary, and expressed his desire to make India the world’s largest diamond trading hub and a global jewellery hub. Having crossed the USD 40 bn mark in exports in FY17, we are now devising a strategy for Vision 2022,to enable India attain global leadership position in gems & jewellery in its 75th year of Independence. The strategic focus will be on Exports, Training & Education, Employment Generation, Value Addition and sustained Marketing. GJEPC has expanded horizontally to encompass various aspects such as trade financing, training and infrastructure creation. We are in the process of creating jewellery park in Maharashtra and 10 common facility Centres across India. The gems and jewellery industry in India, which is the original example of Make in India, is now focussing on leveraging traditional Indian jewellery making & designs and promoting them across the globe to the western world. We shall leverage Skill India to train existing resources as artisans/ craftsmen need to upgrade to global standards of excellence and innovation. We want to make India a global leader in the gems and jewellery business.”
Major Export Destinations for the Gems & Jewellery Sector in FY2016-17 were UAE with 32% of exports directed to the market followed by Hong Kong at 30% and USA at 23% . The imports of rough diamonds (quantity in lakh carats) grew 21.59% in FY17 to USD 17,080.23 mn as compared to USD 14,047.81 mn in FY16. Import of cut and polished diamonds dropped 5.13% to USD 2,629.2 mn as compared to USD 2,771.46 mn in FY16.
GJEPC has urged the Govt. to follow the equivalence principle when preparing GST Regime. GJEPC has sought exemption for GJI export transactions should not be subjected to any effective GST as regards exports per se as also all related consumption of raw materials, inputs and input services. In the representation, GJEPC has mentioned that all transactions, whether direct or indirect, for exports, should continue not to be taxed with any indirect taxes in the form of GST. It has urged CBDT to give appropriate directive and Relief to the trade under Levy of Penalties for Non-Maintenance of Adequate Transfer Pricing Records under Section 271G of the Income-tax Act, 1961. It has urged Customs to allow job work for diamond, precious and semi-precious stones. It has sought reduction of import duty on precious metal gold.