Boost for India's Gem and Jewellery Sector
In a significant move, Commerce and Industry Minister Piyush Goyal announced the restoration of the Diamond Imprest Licence (DIL) during the India International Jewellery Show (IIJS) 2024. This decision was met with enthusiasm by the gems and jewellery exporters who had been demanding its reinstatement.
The DIL allows eligible exporters to import cut and polished diamonds, including semi-processed, half-cut, and broken diamonds, up to 5% of their average turnover from the past three years, with a requirement to add 10% value. These imports must be used by the importer and cannot be transferred.
The restoration of the DIL is expected to benefit India's gem and jewellery sector in several ways. Firstly, it will make India's diamond exports more competitive compared to countries like China, Vietnam, and Sri Lanka. Previously, cut and polished diamonds imported into India faced a 5% Basic Customs Duty, making exports less competitive. Now, with the DIL, these imports will be duty-free.
Secondly, the DIL will help boost job creation in the sector. In the absence of this licence, cut and polished diamonds were getting imported in Dubai, assorted there, and re-exported, impacting India's exports and jobs in the sector. The restoration of the DIL will bring these activities back to India, creating more job opportunities.
Furthermore, the DIL will help promote the growth of the jewellery sector. The recent Budget announcements, including the significant cut in gold and silver import duty, are also expected to contribute to this growth. The Common Facility Centre for the sector at a special economic zone will further support the industry by providing training to 1,500 special youngsters every year and facilitating their placement within the industry.
Overall, the restoration of the Diamond Imprest Licence is a positive step for India's gem and jewellery sector. It is expected to boost exports, create jobs, and promote the overall growth of the industry.