The CII National Committee on Gems & Jewellery has been an essential part of industry’s policy advocacy. Some important issues of concern that need policy reforms for the overall growth of the industry include:

Direct Import of Gold:

India is the world’s largest importer of gold and the Jewellery Industry is big at nearly Rs.100, 000 Crores. It has an even bigger potential. However, the high transaction costs in the Jewellery Industry have been, for some time, a cause of serious concern, and are an impediment to the growth of the Industry. To address this, the industry has represented to the Government, seeking permission to directly import gold for the manufacture of jewellery for domestic sale. CII has therefore urged on behalf of the Jewellery Industry that import of gold be permitted with the existing maximum of 180 days tenure from International banks / refineries directly. This will positively impact the industry.   

Infrastructure:

The Karigars need attention. Most Karigars do not even have the basic infrastructure and facilities. In order to change this situation, the Government can consider setting up its own fund or work out a joint Venture which would look into the development of Karigars.

Other Issues:

a)     Extension of EPC upto 270 days across the board

b)    Subvention of 2% interest upfront

c)     Crystallising the dollar funds on due dates and converting them to rupee funding for the remaining period, thus avoiding the account becoming irregular.

d)    Banks to stop insisting on a letter from the buyers to extend date of payment upto 180 days as permitted by the RBI. 

e)     Continuation of standby line of credit of 20% of limits sanctioned

f)     Treatment of creditors for calculation of drawing power from monthly stock statement

g)    Restoration of margins on stocks for calculating DP for packing credits to 10%