GJEPC Unveils $100 Billion Export Vision for Gem and Jewellery Sector

The Gem & Jewellery Export Promotion Council (GJEPC) has announced an ambitious vision to achieve exports worth $100 billion for India’s gem and jewellery sector. This strategic plan was unveiled during a meeting chaired by Prime Minister Narendra Modi, aimed at gathering insights from prominent export sectors to enhance India’s competitive edge in global trade.

At the meeting, GJEPC chairman Kirit Bhansali highlighted the sector’s impressive contributions, which include $30 billion in exports and $85 billion in domestic sales. The gem and jewellery industry also supports direct employment for over 42 lakh individuals throughout India, accounting for approximately 7 percent of the nation’s merchandise exports. Bhansali expressed optimism that the sector could surpass the $100 billion export mark and evolve into a $500 billion domestic market by 2047, positioning India as a global centre for gems and jewellery.

In his address, Bhansali proposed several key policy reforms designed to accelerate exports and fortify India’s manufacturing ecosystem. He emphasized the need for an efficient and trade-friendly environment to remain competitive with leading trade hubs such as Belgium, London, the United States, and the United Arab Emirates. As part of his recommendations, he urged the government to introduce a special scheme providing affordable export credit at concessional rates, especially benefiting micro, small, and medium enterprises (MSMEs) that are predominant in jewellery manufacturing and diamond cutting across cities like Mumbai, Surat, Kolkata, and Coimbatore.

Strengthening India’s banking system through recent reforms could enhance exporters’ cost competitiveness. Bhansali suggested that extending interest subvention and ECGC premium subsidies would significantly impact the sector’s ability to compete in the global market.

Bhansali also called for modernising the Customs Act of 1962. He advocated for implementing a Risk Management System and AI-based digital appraisals to streamline customs procedures. These enhancements would lead to faster, more transparent, and cost-effective processes, ultimately improving India’s ease of doing business and global competitiveness.

Approximately 65 percent of India’s studded jewellery exports originate from units located in Special Economic Zones (SEZs). The GJEPC has urged the government to expedite the amendment of the SEZ Act to allow limited domestic sales with fair duty adjustments. This change would enable better utilisation of idle capacity during off-seasons, thereby enhancing productivity and employment stability in the sector.

To further bolster domestic manufacturing and attract global investment, Bhansali proposed the creation of a National Gem & Jewellery Park Policy, akin to existing policies for textiles and leather. Additionally, he requested that the Ministry of Finance simplify export-import procedures and customs processes specific to the gem and jewellery sector, an essential step toward ensuring a competitive environment on par with leading global trading destinations.

Finally, Bhansali appealed to Prime Minister Modi to prepare a White Paper on the Gems and Jewellery Sector, incorporating insights recently submitted by the GJEPC to NITI Aayog, along with findings from a recent report by the Exim Bank. The establishment of this comprehensive document could guide future policies and enhance the sector’s growth trajectory.