The ongoing U.S.-China trade war has benefitted the exports of gem and jewelry from Thailand, whereas India that cuts and polishes 14 out of the total 15 diamonds used globally, has failed to increase its share in the overseas market.
The Gem & Jewellery Export Promotion Council (GJPEC) is of the view that the sector needs a policy push to increase the country’s share in global trade. Talking about the issue, Colin Shah, the vice-chairman of GJPEC said, “The absence of SEZ (special economic zone) policy, e-commerce policy and others are the reasons for which we are not being able to leverage the current spat between the US and China, while countries such as Thailand are increasing their exports.”
According to the SEZ policy, it is mandatory for the units to exit by surrendering the land allotted to them on a lease, which the manufacturers are reluctant to accept.
Many Chinese jewelry manufacturers have made an appeal to the GJPEC to set up centers in the Indian market. “Since the policies are not in place, they cannot set up units in India. We are taking up the issue with the government shortly. We have also been asking for an e-commerce policy for gem and jewelry exports,” added Shah.
For the exports to remain competitive there is a need for policy support from the government. “In the past five years, our gem and jewelry exports have only dropped. The industry has been demanding for long that the SEZ policy and e-commerce policy be put in place,” said Shah.
According to the SEZ policy, it is mandatory for the units to exit by surrendering the land allotted to them on a lease, which the manufacturers are reluctant to accept. The other issue that stands in the way is that the units are sometimes quite large and are not able to engage fully in exports.