Editor’s Note
This article outlines a significant $100 billion export vision for India’s gem and jewellery sector, presented to the Prime Minister. It highlights a key initiative aimed at bolstering the country’s global trade competitiveness.
The Gem & Jewellery Export Promotion Council (GJEPC) has charted out a $100 billion export vision for India’s gem and jewellery sector at a meeting chaired by Prime Minister Narendra Modi. The meeting was convened to seek inputs from leading export sectors on measures to strengthen India’s competitiveness in global trade.
Kirit Bhansali, Chairman of GJEPC, presented key policy reforms on behalf of the gems and jewellery sector, which contributes $30 billion in exports, $85 billion in domestic sales, and provides direct employment to over 4.2 million people across India. Gems and jewellery contribute 7 per cent to India’s merchandise exports.
Mr. Bhansali presented key policy recommendations aimed at accelerating exports and strengthening India’s manufacturing ecosystem, noting that to remain globally competitive with leading trade hubs such as Belgium, London, the USA, and the UAE, India needs to establish an efficient and trade-friendly business environment.
The GJEPC chairman sought affordable credit for exports.
Most of the jewellery manufacturing and diamond cutting and polishing units spread across Mumbai, Surat, Kolkata and Coimbatore fall under MSME.
With India’s banking system strengthened by recent reforms, extending interest subvention and ECGC (Export Credit Guarantee Corporation of India) premium subsidies will further enhance exporters’ cost competitiveness and boost India’s share in global trade.
The industry also sought modernization of the Customs Act, 1962, which included implementation of a Risk Management System and AI-based digital appraisals. These measures will make customs procedures faster, more transparent, and cost-efficient, significantly enhancing India’s ease of doing business and global competitiveness.
Nearly 65 per cent of India’s studded jewellery exports originate from SEZ units. GJEPC has urged the Government to expedite the passage of the SEZ Act amendment, which will allow limited domestic sales with fair duty adjustment and enable optimal utilization of idle capacity during off-seasons, improving productivity, efficiency, and employment stability.
Mr. Bhansali proposed the formulation of a National Gem & Jewellery Park Policy, similar to those existing for the textile and leather sectors, to strengthen domestic manufacturing ecosystems and attract global investment into India’s gem and jewellery value chain. Additionally, GJEPC has requested the Ministry of Finance to simplify export-import procedures and customs processes for the gem and jewellery sector. Such measures are vital to ensure ease of doing business on par with leading global trading destinations.
He further urged the Prime Minister to prepare a White Paper on the Gems & Jewellery Sector based on the inputs recently submitted by GJEPC to NITI Aayog and the findings of the Exim Bank report released recently.