The Union Budget presented by Hon’ble Finance Minister Smt. Nirmala Sitharaman sets India on the path to becoming a developed nation. The reforms are aimed at enhancing the domestic growth potential and creating a new framework to tackle uncertainties in global trade.
The Gems and Jewellery Export Promotion Council (GJEPC) welcomes the recognition of exports as a key driver of growth and the new Export Promotion Mission led by the Union Ministries of Commerce, Finance and MSME. This initiative will facilitate access to export credit and provide support to Micro, Small and Medium Enterprises (MSMEs) to overcome non-tariff barriers. GJEPC also welcomes the creation of BharatTradeNet (BTN), a digital platform for trade documentation and financing solutions.
GJEPC supports the creation of new tariff headings in Chapter 71 to distinguish precious metals, in line with their representation in the platinum alloy classification, which has historically resulted in unwarranted duty exemptions.
Given that the gems and jewellery sector accounts for 85-90% of SMEs, the revised classification criteria for SMEs with a turnover of Rs 250-500 crore will improve operational efficiency and access to capital. The extension of credit guarantees is expected to generate an additional credit flow of Rs 1.5 lakh crore over the next five years.
Furthermore, the reduction in basic customs duty from 25% to 5% on platinum findings will increase access to affordable jewellery. The GJEPC acknowledges the government’s focus on improving productivity, manufacturing quality and global competitiveness, particularly in the labour-intensive sector that employs five million people.
The GJEPC also supports tax relief measures aimed at increasing consumer demand. The Council is committed to working with the government to promote the sector’s contributions to the national economy and is seeking support to co-finance diamond promotion campaigns and develop a gemstone exchange in Jaipur.
Finally, the GJEPC urges the government to align regulations with global standards and create policies that promote exports, foster innovation and encourage sustainable practices.
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