On January 9, gem and jewellery exporters encouraged the government to include in the next Budget measures such as the elimination of import duties on raw materials for lab-grown diamonds and a jewellery repair programme to stimulate the sector and increase exports.
The sector also requested presumptive taxes on diamond sales in special notified zones, as well as the introduction of the proposed DESH bill, which would replace the present law for special economic zones.
The industry is seeking a form of “diamond package” in the next Budget, claiming that due to rising inflation and economic crises in the United States and Europe, as well as repeated lockdowns in China, diamond exports and jobs in Surat have been harmed.
The world’s traditional source of rough diamonds is threatened by deposit depletion, which contributes to the exponential growth in extraction costs. As a result, industries have discovered lab-grown diamonds to be a successful alternative.
These lab-grown or man-made diamonds (LGDs) are manufactured in a laboratory using cutting-edge technologies under strict conditions. They resemble real diamonds in terms of physical appearance, chemical composition, and optical properties. An LGD is made from a seed, which is an important raw element.
“It is anticipated that by 2025, worldwide gems and Jewellery exports would see LGD contribute 10%, hence owning the ability to accelerate economic growth. There will be a significant reduction in reliance on imports, which will help to reduce foreign exchange remittances.
“If the levy on seeds is repealed, job prospects will expand, and auxiliary areas will witness the emergence of employment opportunities,” said Colin Shah, founder and Managing Director of Kama Jewelry.
He was previously the head of the Gem and Jewelry Export Promotion Council.
Mr. Shah stated that nations such as the UAE, Hong Kong, and Turkey are important rivals of India since they have a straightforward method of re-importing jewellery for repair and exporting it abroad.
“India clearly has the potential to be the global repair capital in gems and jewellery. Large exporters will find it simple to establish service centres here for the import and re-export of outright exported jewellery. “This would generate employment, transfer technology, and improve India’s exports,” he continued.
Demanding a diamond package, Surat-based Indian Diamond Institute Chairman Dinesh Navadiya stated that the gem and jewellery industry is requesting that the government announce supportive measures for the industry in the upcoming Budget because it has enormous potential to create jobs and increase exports.
According to the council, gems and jewellery exports were $2.5 billion in November 2022, up from $2.4 billion the previous year.
Thus, the price of a 1-carat diamond will be around INR 250000, depending on the diamond grade.
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