At last union government has announced some relief measures for the gems and jewellery industry. As a part of the trade facilitation measures, minister of commerce and industry, Kamal Nath announced that the employment oriented sectors like Gems and Jewellery, diamonds and precious metals have been given a special boost. However, players in the industry believe that it is a welcome move, but the sector still requires some more relief.

The Export Promotion Council for Gems and Jewellery and Star Trading Houses (in the Gems and Jewellery sector), besides Diamond India Limited, MSTC Limited and STCL Limited have now been added under the list of nominated agencies notified under para 4 A.4 of foreign trade policy for the purpose of import of precious metals. Surat in Gujarat, which is home to thousands of diamond units with lakhs of diamond workers, has been recognized as "Town of Export Excellence".

The export facilitation measures as announced today also state that authorized persons of Gems and Jewellery units in Export Oriented Units shall be allowed personal carriage of gold in primary form up to 10 kg. in a financial year subject to RBI and customs guidelines.

The gem & jewellery industry welcomed the measures announced for the gem & jewellery sector by commerce minister Kamal Nath in the interim trade policy on Thursday.

GJEPC Chairman Vasant Mehta said that availability of gold will become easier for gem and jewellery exporters following the announcements. "This was something we had sought, and we are glad that our demand has been accepted," Mehta said. However, he added that their demand for doubling the interest subvention from 2% to 4% is yet to be fulfilled.

Chandrakant Sanghavi, president of Gujarat Hira Bourse, said he welcomed the measures but added that diamond industry requires a special package, including lots of fiscal measures, to tackle the global recession.

Summit Khanna/ DNA-Daily News & Analysis Source: 3D Syndication