|Photo: Hard Assets|
Thursday, February 05, 2015
DNA formulates policy report to revive India's gems and jewelry industry
Feb 03, 2015: MUMBAI (Scrap Monster): Daily News and Analysis (DNA) - the leading Indian broadsheet has launched a policy report on the gems and jewelry industry in the country. The report outlines various methods to trigger revival of the sector. It also focuses on enhancing the sector’s employment opportunities and boosting its revenue potential.
According to the Policy Document, the exports of cut and polished diamonds from the country have reduced by almost one-third since 2010. India’s domestic production of diamonds is very low, making it compulsory for the trade to depend on diamond roughs. However, India’s profitability has witnessed sharp erosion as cut and polished diamond prices failed to catch up with the rise in rough diamonds. Consequently, skilled diamond workforce in the country has tumbled from 8 lakh to around 3 lakhs.
India is the largest cutting and polishing centre in the world. However, the direct sale of rough diamonds to chain stores and diamond beneficiation centers in other countries has hurt the country a lot.
The DNA Policy Report proposes several policies that the industry should adopt for its revival. Firstly, a uniform duty of 2.5% on all cut and polished exports should be enacted. Secondly, the import of lab-grown roughs should also be exempted from duty. In addition, incentives should be announced for lab-grown diamonds being used in high technology applications. The government should include the industry to be part of ‘Make in India’ campaign, in order to attract foreign investments in the area of high-technology processing of diamond.
DNA believes that the Policy Document would be of use to the government.