SURAT: Slowdown in global markets continues to impact exports of cut and polished diamonds from India. Gems and Jewellery Export Promotion Council (GJEPC) has requested central government to introduce Special Turnover Tax regime for diamond industry with 0.75 per cent tax on sales turnover like it is in Israel, Belgium and Dubai to encourage companies of non-resident Indians to shift capital to India and give a boost to exports.
The latest import-export figures declared by GJEPC show that the exports of polished diamonds in December 2015 decreased by 17.1 per cent at $1.20 billion compared to $1.50 billion in the same month previous year.
However, rough diamond imports during the month increased by 2.44 per cent at 1.46 billion, marginally up by 2.44% in value terms from US$ 1.43 billion the previous December.
Exports of cut and polished diamonds fell by 14.63 per cent to $ 14.79 billion this year and imports of rough diamonds fell to $10.12 billion this year, a decline of 23.97%. Gold jewellery (studded and plain) exports were down 22.91 per cent to $6.20 billion in the first nine months of financial year 2016, while that of medallions and coins to $3.70 billion.
Diamantaires are keeping their fingers crossed over business prospects in the USA, one of the world’s largest diamond consuming countries. “Over 200 jewellery stores in the USA have downed their shutters in the last one year and now Walmart has announced closure of 269 stores globally. This indicates deteriorating economic situation in the USA. India exports around $6.50 billion worth of polished diamonds to the USA per annum,” said diamond analyst Aniruddha Lidbide.
