INDIAN SUPPLY ANALYSIS

REGULATING BODIES:
1. The Gem & 1ewellery Export promotion council (G1EPC): This is the apex body oI
the gem & jewellery trade in India, which was set up in 1966 Ior promoting precious
stone and jewellery exportations. With strength oI 6500 members spread all over the
country, the council is primarily involved in introducing the Indian Gem & Jewellery
products to the international market & promote their exports. To achieve this council
provides market inIormation to its members through trade enquiries, trade and tariII
regulations, rates oI import duties and inIormation about jewellery trade Iairs &
exhibitions. Some oI the Initiatives taken by this body are:

a)Promotion oI Indian diamond and jewellery abroad through advertisements ,publicity
and participation in international Iairs, buyer seller meet and direct approach to market
retailers.
b) Market study through experts in the Iield to identiIy new markets.
c) Promotion oI export oI Hallmark jewellery Irom India to assure Ioreign customers oI
quality & purity oI jewellery made in India.
d) Preparation oI medium term export strategy Ior various sectors including Gems &
jewellery by the Ministry oI commerce.

2. The Gem & 1ewellery Trade council of India (G1TCI): This council is established
with the main aim oI boosting the gem & jewellery trade oI India. It plays an important
role in showcasing the Indian gem & jewellery to the International market. It is a council
Iormed to enhance & boost the jewellery trade oI India by resolving various issues oI the
trade by escalating various to the relevant higher authorities. It also indulge itselI in
disseminating latest inIormation to its jewelers members through a monthly newsletter,
various educative & trade motivational events such as seminars, workshops, exhibitions,
Iestivals etc.
FOREIGN DIRECT INVESTMENT POLICY:

O 100 FDI is allowed under automatic route Ior exploration and mining oI minerals other
than diamonds and precious stones.
O For exploration and mining oI diamonds and precious stones FDI is allowed up to 74
under automatic route.
O For exploration and mining oI gold and silver and minerals other than diamonds and
precious stones, metallurgy and processing, FDI is allowed up to 100 under automatic
route.
GOVERNMENT INITATIVES:
O In 2004-05 the government lowered import duty on platinum Irom US$ 13.82 per 10 gm
to US$ 5.03 and exempted rough coloured precious gems stones Irom customs duty at the
Iirst stage itselI, instead oI claiming reimbursements later.
O #ough, semi-precious stones are already exempt, a move aimed at Iurther promoting the
exports oI studded jewellery and platinum jewellery.
O Import oI gold oI 8 carat and above allowed under the replenishment scheme subject to
the import being accompanied by an Assay CertiIicate speciIying the purity, weight and
alloy content.
O Setting up oI SEZs and gems and jewellery parks to promote investment in the sector.
O In May 2007, the government abolished import duty on polished diamonds.
O Duty Iree import entitlement oI tools, machinery & equipment has been allowed. For
metals other than gold, platinum, it will be 2 per cent and Ior gold and platinum, it will be
1 per cent oI FOB value oI exports during the previous Iinancial year.