New Delhi, July 28 (KNN) In an appeal to steer through the decline in exports from Indian gems and jewellery industry, the government wants the sector to focus on at least 7 per cent growth rate. However the industry comprising of hundreds of Micro, Small and Medium Enterprises (MSMEs), is not very sure if the figures are easy to maintain.

Talking to KNN, Ashok Minawala Spokesperson of All India Gems & Jewellery Trade Federation  (GJF) explained the situation.

He informed that the recent trends in the Indian gems and jewellery exports are not very appealing. Data suggest that the net export in the FY’16 was 32 billion dollars as opposed to 36.2 billion dollars from the previous year, thus registering a decline. It however managed to recover growth of 9 per cent in the following financial year.  Again if one was to look at export data from June, gems and jewellery is among the sectors that registered slow growth in the country’s exports.

Since the overall trade situation is not very stable anywhere in the world, exports are likely to remains slow if not decline.

Ashok said that the exports figures can be maintained only if the organizations and association start focussing on developmental programs for the industry to enable them to make products that can compete in the global market.

Commenting upon the repeated demand of the industry to reduce the import duty on gold to two per cent from 10 per cent, Ashok said that if done it will help the sector stabilize to a great deal.

With over a month into the Goods and Services Tax (GST) regime, the industry is adapting to the new taxation. Initial assessment of the impact suggests that the domestic industry still needs to go a long way to adjust with the GST.

Earlier Manoj Dwivedi, Joint Secretary, Ministry of Commerce and Industry at an event said that the gems and jewellery sector should focus on 7 per cent growth rate in exports as the new normal. Dwivedi also informed that an announcement on the demand of reducing the import duty might come up with the new budget. (KNN/ DA)