Shri Piyush Goyal, the Hon’ble Minister of Commerce & Industry, Government of India, has announced the introduction of the Diamond Imprest Licence, a significant policy initiative that has long been recommended by the Gem & Jewellery Export Promotion Council (GJEPC). The announcement was made during his interactive session at the 40th edition of the India International Jewellery Show (IIJS) Premiere 2024, held at the Bombay Exhibition Centre (BEC), NESCO, Goregaon.
The Diamond Imprest Licence is poised to benefit MSME exporters, who make up a large portion of India’s gem and jewellery sector. This licence will allow Indian diamond exporters, who meet a certain export turnover threshold, to import up to 5% (or potentially 10%) of the average export turnover from the preceding three years. This move aims to create a level playing field for smaller MSME diamond exporters compared to their larger counterparts. Additionally, it is expected to prevent the flight of investment by Indian diamantaires to diamond-mining destinations and generate more employment opportunities in diamond sorting and semi-finished diamond processing.
During his address to a full house of gem and jewellery exporters, Goyal emphasized the government’s commitment to supporting the industry. He highlighted that the Union Budget had reduced duty rates on gold, silver, and platinum, which were previously hindering the gem and jewellery industry's growth and job creation.
Goyal also expressed his intent to address the space constraints faced by IIJS Premiere exhibitors, promising to explore the creation of a 2 million sq. ft. exhibition space for future editions of the show.
Further, Goyal discussed India's active engagement with G7 nations and ongoing negotiations with the European Union. He noted that these discussions are the first where India is negotiating from a position of strength, particularly regarding transparency, data protection, and cost-related issues. The Minister also touched on the possibility of establishing a diamond centre in Mumbai or Surat, similar to the one in Antwerp, and ongoing talks with De Beers Kimberley Process to develop mechanisms for segregating and tracing diamond origins.
Goyal emphasized that India’s approach to Free Trade Agreements (FTAs) is consultative and balanced, citing the success of the India-UAE CEPA and India-Australia ECTA agreements. He highlighted the removal of double taxation for the Indian IT sector under the FTA with Australia and a commitment from Europe’s EFTA (Switzerland, Iceland, Norway, and Liechtenstein) to invest $100 billion in India, creating 1 million jobs.
Vipul Shah, Chairman of GJEPC, praised Goyal’s leadership in securing these FTAs and expressed optimism about the potential for further agreements with the UK, EU, and Canada, which could significantly boost exports.
The IIJS Premiere 2024, showcasing the theme "Brilliant Bharat," is expected to attract over 50,000 buyers from across India and more than 2,000 international buyers from over 60 countries. With 3,600 stalls and 2,100 exhibitors, the show will cover an exhibition area of 135,000 sq. meters (1.45 million sq. ft.), significantly larger than comparable events in the western world.
IIJS Premiere will feature a diverse range of products, including diamond, gemstone, and studded jewellery, gold and gold CZ jewellery, lab-grown diamonds, high-end couture jewellery, silver jewellery, colour gemstones, and machinery and technology allied industries. The show underscores India’s growing prominence in the global gem and jewellery market.
