New Delhi, Jan 12 (IEBusiness) With a view to strengthen the gems and jewellery industry, the Government has taken a number of steps, including establishment of Special Notified Zone (SNZ) and setting up of common facility centres for gems and jewellery sector.
The measures include creation of separate ITC HS Code for lab grown diamond, reduction of GST rates for cut and polished diamonds and precious stones, exempting IGST on import of gold by specified agencies and banks, official sources said.
Exemption from GST on supply of gold by nominated agencies to exporters and providing financial assistance for participation of international fairs, for organising buyer seller meets, creation of export related infrastructure under various schemes of Department of Commerce are some of the steps taken by the government for the industry.
Issues raised by the industry are resolved from time to time to improve ease of doing business.
The gem and jewellery sector contributes significantly to the economy of the country in terms of exports as well as employment generation.
In the year 2017-18, the gem and jewellery exports was 13.69 per cent of total merchandise exports from the country. As per estimates, the sector provides employment to around 5 million people.
During the financial year 2018-19 (up to November, 2018), the gem and jewellery exports are USD 27.05 Billion as compared to USD 28.02 Billion during the corresponding period in previous year, showing decline of 3.46 per cent.
Gem and jewellery exports were USD 41.54 billion in 2017-18 compared to USD 43.41 Billion, showing decline of 4.3 per cent.