Gem, jewellery shipments may reach Rs 1.6 lakh cr in FY21: GJEPC

Exports have slowly been improving as during September, the total shipment was down 26.45 per cent compared to the same month last year, while in October it narrowed to 19 per cent.

Mumbai: With improvement in export market conditions, the Gem and Jewellery Export Promotion Council of India (GJEPC) on Monday said if the current pace continues the total shipments are expected to reach around Rs 1.6 lakh crore ($20-21 billion) in this financial year. “If the current pace of exports continues to be around $2-2.5 million every month, then we’ll end the year between $20-21 billion,” GJEPC chairman Colin Shah told reporters at a virtual press conference.

He further said exports have slowly been improving as during September, the total shipment was down 26.45 per cent compared to the same month last year, while in October it narrowed to 19 per cent and in November the decline was recorded at just 3.88 per cent. “We have been extremely aggressive in the last 3-4 months during this pandemic times in taking various initiatives, especially on the digital front. Our virtual buyer seller meets and the India global connects that we’ve been doing every fortnight. They’ve really helped in not only connecting the entire trade together, but also in boosting business,” he added.

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Several government measures, including the extension of time limit for export credit available on the gold loan, on interest subvention, extension of moratorium on interest and EMI payments, the real classification of MSME, among others have helped the industry get back on its feet, Shah stated.

The manufacturing also has been back to normalcy, he said adding that pan-India “we’re already all back at 85-90 per cent level, and the 10 per cent which hasn’t come back is only because of Covid-19 or certain lockdowns that are still prevalent in certain areas of the country.”

Going forward to boost gems and jewellery exports, GJEPC in its pre-Budget proposal has urged the government to reduce the import duty on cut and polished diamonds to 2.5 per cent from the current 7.5 per cent.

Besides, it has demanded that the import duty on cut and polished precious and semi-precious gemstones be slashed to 2.5 per cent from 7.5 per cent and import duty on precious metals like gold, silver and platinum be reduced to 4 per cent from 12.5 per cent.