Accenture To Revive Gem Exports

Rising competition from Thailand and China in the exports market is posing a threat to the domestic gem export. In order to tackle this, the Gem & Jewellery Export Pro motion Council (GJEPC) has roped in consultancy firm Accenture to prepare a roadmap to restart India's six jewellery SEZs.

The six gem and jewellery SEZs are – SEEPZ in Mumbai, Jaipur SEZ, Noida SEZ, Vizag SEZ, Hyderabad SEZ and Manikanchan in Kolkata. These SEZs have slowly lost a major portion of business to jewellery makers in domestic tariff area (DTA), or those located outside SEZs, due to policy issues, report states.

Accenture recommendations are likely to be submitted to the government for consideration. As per the Union Budget announced last month, the government intends to focus on SEZs and the jewellery industry is keen to take advantage of this. In the budget, full exemption of pre-forms of precious and semi-precious stones from basic customs duty is a part of steps aimed at enhancing exports. Gems and jewellery exports are one of the country’s main sources of foreign currency.

The report further states that in the first three months of current fiscal year, exports from DTA had increased more than two-and-half times to Rs 6,973.95 crore from Rs 2,553.38 crore during April-June last year. On the contrary, shipment of gold jewellery from SEZ and export processing zones - including gold jewellery and gold medallions and coins - had fallen 29 per cent to Rs 4,702.02 crore. In fiscal 2014, exports to from DTA went up more than two-and half times to Rs 34,723.30 crore, whereas exports from SEZ declined 63 per cent to Rs 32,196.34 crore. Not just exports, imports to DTA are increasing as well. During the first quarter of this fiscal year, imports of cut and polished diamond into SEZs had plunged 78 per cent to Rs 1,608.52 crore from a year earlier.