“It cannot be denied that the global situation has been depressed and things are not improving. The government is doing what it can to change the situation for the small and medium players,” the minister said at the inauguration of ‘India Diamond Trading Center’ on Sunday.
She said the merchandise exports is likely to fall further and the Ministry is making all efforts to help small and medium players. The gems and jewellery sector constitutes 13% of the merchandise exports, she added.
India’s exports remained in negative territory for the 12th straight month in a row after it registered a drop of 24.43% in November to $20.01 billion as against $26.48 billion in the year-ago period.
The Minister said, the gems and jewellery sector needs a lot of attention as it provides jobs to millions and the government will take steps to remove the hurdles that are impediment to the growth.
“We will ensure that the gems and jewellery sector remains vibrant. We will take up some of the concerns of the industry with Finance Ministry, especially the taxation issue,” she added.
Sitharaman further said, the industry has grown since 2004-05, to become an important sector, exporting $40 billion goods in 2014-15, due to its entrepreneurship, drive and hard determination to be internationally competitive.
Speaking about the Diamond Trading Center, the Minister said, “Last December 2014, Prime Minister Narendra Modi in the presence of Russian President Vladimir Putin at the World Diamond conference, jointly organised by the GJEPC, said he would announce a Special Notified Zone (SNZ) and within one year we are here to inaugurate the diamond trading center. And this is much before the scheduled visit of the Prime Minister to Russia.”
Commenting on the launch of the country’s first SNZ at Bharat Diamond Bourse (BDB) here, GJEPC Chairman Praveenshankar Pandya said, “The creation of SNZs and regular availability of direct supply of rough diamonds in the country itself and within easy access, will not only save time and effort of travel by diamond manufacturers, who move to different cent-res to procure rough diamonds, it will also minimize middlemen commissions and eventually costs.” The wide array of rough diamonds on offer to Indian buyers will be unprecedented; as will be the number of companies, including medium and small enterprises, who will have the never-before opportunity to procure rough directly from mining companies, he added.
Speaking about the future plans, he said, “Once the operations of the SNZ are fine-tuned, similar SNZs will be set up by GJEPC in association with various state governments. The Gujarat government has already proposed to set up a gem bourse with such SNZ set up inside it. The concept can also be extended to coloured gemstones segment in Jaipur where the council has proposed to set up a gem bourse,” he added.
Speaking on the occasion, Rio Tinto Diamonds Managing Director, Jean-Marc Lieberherr, said the company s first diamond project in Madhya Pradesh is in final stages and is expected to become operational in 2017.
Source: Daily News & Analysis
Image Courtesy : Indiatoday