The Maharashtra government has announced a new policy to bring the gems and jewellery industry to the forefront in global competition. It has set a target of creating five lakh new jobs in the next five years, to achieve this ambitious plan. The gems and jewellery industry of India contributes 7% to India’s Gross Domestic Product (GDP)
The policy has an ambitious plan to attract investments of Rs 1 lakh crore and make Maharashtra India’s leading gem and jewellery export hub. A fund of Rs 13,835 crore has also been approved for the implementation of the policy.
According to the Maharashtra Industry, Trade And Investment Facilitation (MAITRI), the state accounts for a staggering 47% of the nation’s Gems and Jewellery exports for FY 2023-24, valued at USD 15 billion. With this policy, the state aims to double the state’s exports in this sector. The policy has built-in special concessions to increase this percentage.
The government expects an expenditure of Rs 1,651 crore between 2025-2030 and Rs 12,184 crore for the next 20 years. A budgetary provision of Rs 100 crore has also been made for the 2025-26 financial year. Secretary of the Industries Department, P. Anbalgan, said, “We hope this policy will help Maharashtra emerge as a powerhouse of gems and jewellery industry in the global market.”
This policy has given special emphasis on building modern technology, sustainable production, research and development, skill development and digital trade hubs along with tradition. India Jewellery Park in Navi Mumbai, ‘Bharat Diamond Bourse’ in Mumbai and ‘Seepz Export Processing Zone’ will be the major implementation centres.
Small and medium enterprises will be given encouragement for which workers and new entrepreneurs will be provided with financial aid and training. Special schemes will be implemented to create skilled artisans.
Mumbai has the largest gems and jewellery centre in the world, which is spread over 20 acres, Bharat Diamond Bourse (Bandra Kurla Complex) with a turnover of around Rs 4,632 crore. Over 10,000 artisans make handmade jewellery in Zaveri Bazaar.
Speaking to media, Kirit Bhansali, Chairman, Gems and Jewellery Export Promotion Council, said, “The Maharashtra government has brought this policy to give a competitive boost to exports in this sector. The main focus of this policy is on micro, small and medium enterprises (MSMEs), first-time exporters and labour-intensive sectors that need easy financing and market access. This policy is a flexible, digital and outcome-driven framework. This will make it possible to respond promptly to changes in global trade.”
Machine-made jewellery is produced in the Santacruz Electronics Export Processing Zone (SEEPZ), which is spread over 111 acres. This policy will also provide incentives like interest subsidy, stamp duty concession, electricity tariff concession, employee provident fund contribution, skill development assistance, export facilities, branding-marketing incentives, single window scheme, a plug and play facility.
In 2024, India ranked eighth in global exports with a 3.2 per cent share. In 2022-23, western Indian states contributed 74.66 per cent to exports. The new policy is expected to increase Maharashtra’s regional gross value added (GVA) from $4 billion in 2022 to $6 billion by 2028.
“The state’s share in this is expected to be $2 billion and grow at an annual rate of 15 per cent. The state currently accounts for 18 per cent of India’s total GVA. Around 7,000 MSMEs generate employment. Industries like SEEPZ and Gems and Jewellery Export Promotion Council’s (GJEPC) mega CFC (Common Facility Centre), as well as the Swarna Abhujari Group in Nanded, will play a key role in implementing this policy,” P Anbalgan said.
Schemes like ‘Interest Equalisation’ and ‘Market Access Initiative’ have been brought together under this modern umbrella. This policy will mainly work in two parts. The first part will be Export Promotion, through which this trade finance will be made cheaper and wider access using interest support, guarantees and credit tools. The second part is Export Direction. This will provide non-financial assistance like quality upgrades, branding, packaging, trade fairs, warehousing, logistics and export intelligence.
The key features of this policy are easy financing for micro, small and medium enterprises, providing global markets for products, increasing exports from districts and generating more employment. “I would describe it as a far-reaching step towards creating a comprehensive and technology-based export system in line with the ‘Developed India 2047’ policy, said Bhansali.
The recent changes made in the structure of the Goods and Services Tax (GST) has however had no major impact on this sector as yet. “The GST Council has retained the same rates for the gems and jewellery sector. That is, the GST rate is currently 3 per cent on basic products and 5 per cent on manufacturing. If the margin of the traders had been higher, there would have been some reduction in prices, which hasn’t happened said,” said Hiten Shah, member of SEEPZ Gems and Jewellery Manufacturers Association.
