The Gem & Jewellery Export Promotion Council (GJEPC) has lauded the Union Budget presented by Hon\u2019ble Finance Minister Smt Nirmala Sitharaman, citing its potential to drive India\u2019s economic growth and strengthen exports. Vipul Shah, Chairman, GJEPC welcomed the budget\u2019s recognition of exports as the fourth engine of growth and the newly announced Export Promotion Mission, which will set sectoral and ministerial targets with support from the Commerce, Finance, and MSME Ministries.<\/p>\n
\u201cThe Union Budget puts India on the path to Viksit Bharat, unlocking domestic growth potential while shaping a trade roadmap to navigate global uncertainties,\u201d Shah stated. He highlighted the importance of the digital public infrastructure initiative, BharatTradeNet (BTN), which will provide a unified platform for trade documentation and financing solutions, simplifying international trade processes.<\/p>\n
The GJEPC also welcomed the proposed creation of new tariff items in Chapter 71, distinguishing precious metals based on purity levels. This aligns with the Council\u2019s representation to address classification issues related to platinum alloys under the India-UAE CEPA, preventing unwarranted customs duty exemptions.<\/p>\n
The budget\u2019s emphasis on MSME growth has been met with optimism, especially the revised classification criteria for MSMEs with turnover limits increasing from Rs. 250 crore to Rs. 500 crore. According to Shah, this will enable gem and jewellery enterprises\u2014comprising 85-90% of MSMEs\u2014to achieve economies of scale, technological advancements, and better access to credit. The extension of credit guarantee cover, facilitating an additional Rs. 1.5 lakh crore in financing over the next five years, is expected to further boost the sector.<\/p>\n
Shah also praised the reduction of Basic Customs Duty from 25% to 5% on platinum findings under classification 7113, which will enhance affordability and drive consumer demand for new jewellery products. Additionally, the government\u2019s stable approach to duties and levies is anticipated to improve the ease of doing business in the industry.<\/p>\n
Another major boost for the lab-grown diamond (LGD) segment is the removal of Customs (Import of Goods at Concessional rate of duty or For Specific End Use) Rules 2022 (IGCR) condition for import of seeds for use in manufacture of Lab Grown Diamonds and Extension of customs duty exemption on such seeds till 31st<\/sup> March 2026.<\/p>\n The focus on labour-intensive industries has been another key highlight. With 5 million people employed in gem and jewellery exports, the National Manufacturing Mission and National Centres of Excellence for Skilling will enhance productivity, quality, and global competitiveness. Shah expressed confidence that these measures will bolster India\u2019s \u2018Make for India, Make for the World\u2019 initiative.<\/p>\n The budget\u2019s tax relief measures are also expected to stimulate consumer demand, further supporting the sector. However, GJEPC has requested clarity on Safe Harbour Taxation through the issuance of FAQs. Shah also urged the Finance Minister\u2019s support to co-fund global diamond promotion campaigns, include jewellery parks in the harmonised infrastructure list, and establish an Infrastructure Support Fund to develop a Gem Bourse in Jaipur.<\/p>\n","protected":false},"excerpt":{"rendered":" The Gem & Jewellery Export Promotion Council (GJEPC) has lauded the Union Budget presented by Hon\u2019ble Finance Minister Smt Nirmala Sitharaman, citing its potential to drive India\u2019s economic growth and strengthen exports. Vipul Shah, Chairman, GJEPC welcomed the budget\u2019s recognition of exports as the fourth engine of growth and the newly announced Export Promotion Mission,…<\/p>\n","protected":false},"author":1,"featured_media":29749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[100,90],"tags":[],"thb-sponsors":[],"class_list":["post-29748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-focus","category-policy"],"acf":[],"yoast_head":"\n