The government was close to imposing presumptive tax and the goods and services tax on the gems and jewellery sector, Kamal Nath, the Union minister for commerce declared at the 33rd Annual Awards ceremony of the Gems & Jewellery Export Promotion Council held in Kolkata.
Both have been long-standing demands of the GJEPC, as measures that would help boost exports that have been growing at an average rate of 30 per cent for the last decade.
The finance minister had earlier this year agreed in principle to replacing the present income-tax regime with presumptive tax while this year's budget set out April 1, 2010 as the date for introducing GST.
Speaking on the occasion, Sanjay Kothari, chairman of GJEPC, requested the minister to ensure that "Generalised System of Preferences benefits for Indian jewellery in the United States of America is continued for a few years."
The US is a major buyer, accounting for 28 per cent of gems and jewellery exports from India, which rose from $15.7 billion in 2004-05 to $16.7 billion last year. Exports until October this year have been worth $9.6 billion.
GJEPC was also exploring new markets from Indian jewellery in Japan and the Commonwealth of Independent States, Kothari said. "2007 has been declared Indo-Japan Year, when 8 Indian companies will be travelling in cities to tap the market there."
The GJEPC was also contemplating import of machinery for the coloured gemstone industry in Jaipur. Besides, there would be the two branches of the Indian Institute of Gems & Jewellery, which will come up in Kolkata and Jaipur this year.
Buddhadeb Bhattacharjee, chief minister of the West Bengal, pointed to the immense potential of the sector considering that India accounted for only 3.5 per cent of the trade in jewellery.
He also pointed to the "skilled artisans from the state who were the mainstay of the industry in states like Gujarat and Maharashtra".
Notable among those awarded were K. Girdharlal International Pvt Ltd, the Mumbai-based Diamond Trading Company sightholder, which notched up exports worth $238 million.
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