In a significant move to bolster India’s jewellery exports, the Indian Bullion and Jewellers Association (IBJA) has proposed setting up a jewellery export facilitation centre at GIFT IFSC in Gandhinagar. A formal proposal has been presented to the GIFT City authorities, and the investment for the proposed centre, the GIFT Trade Centre, is estimated at Rs 500 crore, said sources privy to the development.
“The idea is to create a centralized platform where jewellers from all corners of the country can showcase their products to potential international buyers.
It’s envisioned as a global hub for Indian jewellers to exhibit their designs and facilitate direct purchases,” a source from an International Financial Services Centres Authority (IFSCA) committee, familiar with the proposal, said.
Currently, Indian jewellers visit the UAE Jewellery Centre, where they attend exhibitions and trade their jewellery. However, in this scenario, the duties and taxes of the respective country that hosts the exhibition will apply to the trade.
In the fiscal year 2023-24, exports of plain gold jewellery surged by 61.72% to $6,792.24 million compared to $4,199.96 million in FY 2022-23, according to the data compiled by the Gems and Jewellery Export Promotion Council (GJEPC).
With the proposed model, jewellers from all over India would converge at the GIFT Trade Centre.
“The customs department would oversee the goods brought by the jewellers, and valuation would be conducted by an assaying centre appointed by the IFSCA,” the source said.
A vital advantage of this facility is that buyers can directly purchase jewellery from the jewellers without incurring Indian taxes.
“They can then transport the purchased items to their respective countries through the airport’s green channel or logistics channels without encountering regulatory barriers as the trade occurs within a Special Economic Zone (SEZ) area,” the source explained.
This initiative is expected to facilitate duty-free exports of gold equivalent to the sale value for Indian jewellers. Essentially, jewellers who sell gold will be eligible to receive a bullion depository receipt equivalent to the value of their sales. This will incentivize and simplify jewellery exports.
