DIAMOND
IMPREST LICENCE : ECONOMY
NEWS
: Goyal announces restoration of Diamond Imprest Licence for gems,
jewellery sector
1. Introduction of the Diamond Imprest
Licence
- Announcement:
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.
- Event Details:
- Organized by the Gem & Jewellery
Export Promotion Council (GJEPC).
- Held at the Bombay Exhibition Centre
(BEC), NESCO, Goregaon.
- Dates: 09th to 13th August 2024.
2. Benefits for MSME Exporters
- Support for MSMEs:
The Diamond Imprest Licence is specifically designed to support MSME
exporters within the gem and jewellery sector.
- New Import Allowance:
- Diamond exporters with a specified
export turnover can now import at least 5% of the average export turnover
from the last three years.
- This is a reduction from the
previous 10% allowance.
- Purpose:
The scheme aims to create a level playing field for MSME diamond
exporters.
- Investment Protection:
The measure is also intended to prevent the flight of investment to
diamond mining destinations outside of India.
3. Impact on the Gem & Jewellery
Industry
- Previous Duty Reductions:
Recent reductions in duty rates for Gold, Silver, and Platinum had adverse
effects on the industry.
- Positive Outlook:
- The introduction of the Diamond
Imprest Licence and other measures are expected to encourage the movement
of gold and jewellery through official channels.
- This could lead to an increase in
job orders and help offset export losses caused by the global recession.
- Encouragement to Exporters:
Exporters in the industry are urged to maintain optimism despite recent
challenges.
4. Government Engagement with G7 and Other
Initiatives
- International Engagement:
The Indian Government is actively engaging with the G7 and EU Ministers.
- Key Issues:
Discussions focus on transparency, data protection, and cost-related
concerns.
- Negotiation Strength:
India is negotiating from a position of strength for the first time with
the G7.
- Diamond Centre Plans:
- Efforts are underway to establish a
diamond centre in Mumbai or Surat, similar to Antwerp.
- Plans include improving diamond
segregation and traceability in collaboration with the De Beers Kimberley
Process.
5. Free Trade Agreements (FTAs) and
Investments
- Consultative Process:
The government emphasizes the importance of a consultative process to
ensure fair and balanced FTAs.
- Recent FTAs:
- ECTA with Australia and CEPA with
the UAE have successfully protected sensitive sectors.
- Double Taxation Removal:
The FTA with Australia includes the removal of double taxation for the
Indian IT sector.
- Investment Commitment:
Europe’s EFTA countries have committed to investing $100 billion in India.
6. Focus on Value Addition and Innovation
- Response to Global Recession:
Indian exporters are advised to focus on value addition in their products.
- Market Trends:
- There is a growing preference for
intricate products with diligent workmanship.
- Bespoke handmade jewellery is
increasingly favored over high-cost items.
- Customer Preference:
Discerning customers continue to seek value for money, even in a
challenging economic environment.
7. About The Gem and Jewellery Export
Promotion Council (GJEPC)
- Establishment:
The GJEPC was established by the Ministry of Commerce, Government of
India, in 1966.
- Role:
It is one of several Export Promotion Councils (EPCs) created to boost
India’s export sector.
- Mission:
The GJEPC was formed as India began engaging with international markets
post-Independence to enhance the country’s global trade footprint.
Source
: https://indianexpress.com/article/cities/ahmedabad/goyal-announces-restoration-of-diamond-imprest-licence-for-gems-jewellery-sector-9507083/