Working on package for gems and jewellery sector: Prabhu
26 Nov 2017 10:54 PM IST
New Delhi: The commerce ministry is working on a package in consultation with the gems and jewellery industry to boost export and create jobs in this labour intensive sector, Union minister Suresh Prabhu has said. The ministry has already asked the gems and jewellery industry to work out a proper business plan to promote growth of the sector.
"We have some time left, in another few weeks we have to finalise it as Budget will be in February, so we have to work on that," Commerce and Industry Minister Prabhu said.
The Gems and Jewellery Export Promotion Council (GJEPC) has demanded cut in import duty on gold to 4 per cent from the current 10 per cent.
An official of the council said the industry body is preparing recommendations for the sector which would be submitted to the ministry.
"We have asked for cut in gold import duty to 4 per cent. We are hoping that the finance ministry will consider our demand. We also want support for technology upgradation and setting up of gems and jewellery parks in the country and streamlining of labour rules," the official said.
When asked about the demand of the industry for cut in import duty on gold, he said "there is a trade off" as too much of gold import causes problem for CAD (current account deficit) but on the other hand inbound shipments of the precious yellow metal for export purposes benefit the current account.
"So how to ensure (this balance) is something which we will have to work. How can you have jewellery without gold," he said, adding import of gold for export by making value addition is the best thing and "how to structure that, it is something which we have to work".
In general terms, CAD refers to the difference between inflow and outflow of foreign exchange that has an impact on the exchange rate.
PC Jewellers MD Balram Garg too said that there has been demand for a significant cut in the import duty as small exporters are facing huge problem in procuring gold.
"WE need to give incentives to boost exports of the sector. We have submitted our demand. The commerce ministry is very positive on that. Export situation is not good and incentives will help enhance competitiveness of the sector," Garg said.
India is the world's second biggest gold consumer after China. The import mainly take care of the demand of the jewellery industry.
At present, gold import attracts 10 per cent duty. The gems and jewellery industry along with the commerce ministry have time and again urged the finance ministry to consider a cut in the import duty.
Talking about the diamond sector, Prabhu said he is talking to the chief minister of Madhya Pradesh to revive a diamond mine as reserves for raw material is not adequate in the country.
Happy to receive Apple, waiting for formal proposal: Minister
New Delhi: Commerce and Industry Minister Suresh Prabhu said the Centre will support iPhone maker Apple to set up manufacturing unit in the country and is awaiting a formal proposal from them.
"Let us get a good proposal from them...We will be very happy to receive Apple, one of the top brands in the world. We are willing to find out if there is any difficulty they may face. We will be more than happy to resolve that difficulty.
So we will await a formal proposal," Prabhu said.
He also said that the Centre is willing to call all state chief ministers who are willing to give them the best deal.
The Cupertino-based iPhone and iPad manufacturer Apple has asked for certain concessions for setting up manufacturing unit in the country.
The government had sought investment and job creation details from the iPhone maker to facilitate setting up its proposed manufacturing facility in India.
In March, the then Commerce and Industry Minister Nirmala Sitharaman had informed the Rajya Sabha said that the government has not accepted 'most of the demands' of the company, which wants to set up manufacturing unit in India.
Apple India had sought concessions, including duty exemption on manufacturing and repair units, components, capital equipment and consumables for smartphone manufacturing and service/repair for a period of 15 years.
The company also wants relaxation in the mandated 30 per cent local sourcing of components besides reduction in customs duties on completely-knocked-down and semi-knocked-down units of devices that are to be assembled in the country. Apple does not manufacture devices on its own but gets the job done through contract manufacturers.
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