India’s diamond industry is urging the government to introduce a series of tax and other incentives in the upcoming budget to facilitate the import of rough diamonds, IDEX Online reports.
The Gem & Jewellery Export Promotion Council (GJEPC) is specifically advocating for a safe harbor rule for the sale of rough in Special Notified Zones (SNZs). Additionally, they are calling for the implementation of a Diamond Imprest License and a reduction in the import duty on cut and polished diamonds from 5% to 2.5% in the Union Budget scheduled for February 1.
GJEPC Chairman Vipul Shah stressed the need for strategic policy intervention to maintain competitiveness internationally, saying: “Gem and Jewellery exports have been facing a challenging time on account of economic downturn in key export markets, geo-political concerns, supply and demand side constraints in global diamond industry, unavailability of precious metal in the country among others[…].”
India’s gem and jewelry sectors, which employ 4.3 million people, account for 10% of the country’s merchandise exports.
In related news to the Indian diamond industry, Kiran Gems, recognized as the world’s largest rough diamond manufacturer, has relocated its staff from the recently inaugurated Surat Diamond Bourse (SDB) back to Mumbai’s Bharat Diamond Bourse (BDB), mere months after the SDB’s grand opening.
The $388 million SDB, touted as the world’s largest office building, launched in November but has struggled to attract significant tenants, with Kiran Gems being a notable exception.