Gem And Jewellery Export Promotion Council (GJEPC) held a press meet on April 15, 2008 to release the annual performance figures for the financial year 2007-2008, to talk about the changes in the foreign policy and to lay out its future plans. The Indian Gem and jewellery industry has witnessed a growth of 22.27 percent amounting to total exports of US$20889.21 million (INR 84,058.19crores) April 2007-March 2008. The gem and jewellery sector accounted for 13.41 percent of India’s total merchandise exports.%%Export of cut and polished diamonds which was the performance driver was nearly 68 percent of the export basket, grew from USD 10.9 billion in 2006-07 to USD 14.2 billion in 2007-08. Hong Kong emerged as the largest importer of cut and polished diamonds from India, with a share of 35 percent of the total exports, followed by United States which accounted for 24 percent and UAE at 13 percent. Exports of coloured gemstones grew from USD 246.4 million in 2006-2007 to USD 276.42 million in 2007-08. The export of gold jewellery rose by 8.07 percent with exports amounting to USD 5622.41 million in 1007-08. The gold jewellery export to USA declined over previous year and was attributed to introduction of GSP in July 2007.%%Commenting on the yearly performance the Gem & Jewellery Export Promotion Council (GJEPC) chairman Sanjay Kothari said, “The industry has maintained a steady growth rate this year, but this growth is a result of uncrease in trading activities as actual manufacturing has shown a decline. Due ti the volatility of gold prices and international economical scenario, demand for gold jewellery has witnessed a slow down worldwide.”%%Ministry of commerce has set an ambitious target for 2008-2009 and 5 percent world share by 2020. India’s commerce minister Kamal Nath announced a number of export promotion measures on April 11, for the gem and jewellery sector under the focus product and focus market scheme for high value manufactured products and exports for their sectoral growth.%%

Some of the recommendations include raising the value of jewellery parcels for export to $75,000, the ability to export coloured gemstones on consignment basis and the extension of the time period to re-import branded jewellery to one year. The Gem & Jewellery Export Promotion Council (GJEPC) chairman Sanjay Kothari said, “The trade fraternity welcomes the new policy and would actively support the commerce ministry’s overall export target of $200 billion set for 2008-09. However, that the industry is disappointed with some key recommendations left out by the commerce ministry, which was vital for the growth of the trade.”%%{{Following recommendations have been considered by the Commerce Ministry }}$$ • The limit value of jewellery parcels for export through foreign post office (including via speed post) has been raised from US$ 50,000 to US$ 75,000$$• The export of coloured gemstones on consignment basis has now been allowed$$ • Surat (Surat Hira Bourse) has been included as the port of export for gold/silver/platinum jewellery $$• The time period for re-import of branded jewellery remaining unsold has been extended from 180 days to 365 days$$ • The replenishment authorization for duty free import of consumables, machinery, tools and equipments has been extended to cut & polished diamonds.$$• Conditions (i.e. an exporter with turnover of Rs 5 crores for last 3 years) for sending diamonds for certification/grading to laboratories have been removed $$• The income tax exemption available to 100% EOUs under Section 10B of Income Tax Act, which was set to expire on 31.3.2009 has now been extended to 31.3.2010%% Gem & Jewellery Industry is undergoing a difficult phase and the policy amendments will help enhance the business and drive growth in times to come. But the industry is not 100 percent happy with some key recommendations that have not been considered by the Commerce Ministry which were vital for the growth of the trade. The government has reduced the turn over tax from eight percent to six percent but its not yet in par with Antwerp where the turn over tax is 1-2 percent.%%Owing to the phenomenal rise in gold prices (27% in 2007), the Industry had requested for introduction of Positive Value Addition for plain/studded precious metal jewellery in Domestic Tariff Areas (DTA) and Export Oriented Units (EOU). In this regard no such change has been announced as well as the government refuse to include all exporters (apart from nominated agencies) for direct import of gold. GJEPC had also requested the government to include the import of rough diamonds and coloured gemstones under the category of exemption from obtaining IEC number and make auctioning of raw materials easy for the trade.%%{{Recent Developments:}}$$ A delegation along with Jairam Ramesh, Minister for commerce visited Angola and Namibia to form a joint working Group between Namibia and India and prepare a plan for long-term working relationship in the diamond sector. The focus would be on direct rough supply from Namibia and setting up factories and training institutions. The delegation in Angola discussed that ENDIAMA, diamond mining company would shortly open an office in India. Angola has invited Indian diamond companies to set up factories and traing centers in Angola. The council has invited the President of Angola to be the Chief Guest at Mines to Markets 2009.%%

{{Future Initiatives:}}%% GJEPC will focus on marketing and promotion by doing generic advertising and appealing to IDMA and CIBJO to promote diamonds since De Beers has recently withdrawn its marketing initiatives. It will also focus on promoting brand India. The council also plans to introduce a trend cell with help of NIFT and NID. Talent development program is another of council’s initiatives and it will do this through its educational institutes and GIA who is setting up a educational institute in India. GJEPC plans to focus on design and innovation in all its future endeavors.