India’s Commerce Ministry Plans Task Force to Enhance Gem and Jewellery Exports

The Indian Commerce Ministry is considering a dedicated task force to revitalize the gem and jewellery sector, which faces challenges such as reduced global demand, geopolitical uncertainties, and supply chain disruptions. This initiative aims to replicate the success of similar efforts in other sectors, such as textiles, and to strengthen India’s position as a global leader in the gem and jewellery industry.

Key Challenges and Opportunities:
Global Demand Slowdown: Markets in the U.S., China, and the Middle East have been impacted by geopolitical tensions and economic challenges. Additionally, sanctions on Russia have disrupted diamond supplies, affecting India’s exports of polished diamonds.

Infrastructure and Policy Support: Industry leaders, including the Gem and Jewellery Export Promotion Council (GJEPC), have called for policy reforms such as extending credit periods, enhancing pre- and post-shipment financing, and supporting infrastructure projects like the India Jewellery Park in Mumbai.

Technological Advancement: To compete globally, stakeholders emphasize the need for investments in advanced manufacturing technologies and design innovation. The Chinese industry’s competitive edge in lightweight, well-designed jewellery has further highlighted this necessity.

Government’s Proposed Actions:
Ease of Doing Business: The task force will focus on creating a favorable environment by addressing issues such as liquidity, regulatory burdens, and import-export processes.

Export Growth Targets: The government aims to elevate gem and jewellery exports to $75 billion in the coming years, building on the $43.75 billion target for the current fiscal year.

Support for MSMEs: A significant portion of the sector comprises small and medium enterprises. The task force will help streamline their operations and improve their access to global markets.

Collaborative Efforts:
The GJEPC has been proactive, organizing virtual trade events and engaging with global stakeholders to boost visibility and demand for Indian jewellery. The proposed task force will provide a structured framework for such collaborations, ensuring sustained growth and resilience in the sector.

This initiative underscores the importance of the gem and jewellery sector, which contributes 7% to India’s GDP and employs over 5 million individuals. With strategic interventions, the government and industry aim to secure India’s leadership in this domain while fostering innovation and sustainability.