The Gems and Jewellery Export Promotion Council (GJEPC) has said that India's gross exports of gems and jewellery sector are likely to decline 5-7% in the current fiscal year (FY20) as compared to the previous financial year. It said the decline will be on account of global downturn and rise in gold prices which has affected domestic demand. As per the GJEPC, net exports of the sector declined 5.32% to $30.96 billion in FY19, mainly on account of slowdown in demand in major developed markets. Last year gross exports was around $40 billion.
Besides, GJEPC Chairman Pramod Kumar Agarwal has said the Council has requested the government that finished jewellery be kept out of the purview of proposed mega trade deal RCEP to protect the interests of domestic manufacturers. The Council has also demanded that the import duty on finished diamonds and coloured gemstones be brought down to 2.5% from current 7.5%.
Agarwal said the centre will facilitate growth of exports with main focus on North India and also boost outbound shipments. He said the Council has started setting up new common facilitation centres with the help of commerce and industry ministry and these are coming up in Delhi, Jaipur, Coimbatore and Kolkata. He said the GJEPC expects outbound shipments of the sector to touch $75 billion in the next 4-5 years and create 1.5-2 million jobs to add to 5.5 million workforce at present.