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What is the News?
The recent reforms in the gems and jewellery industry would help it achieve the $43.75 billion exports target for this fiscal year.
About the performance of Gems and Jewellery Sector
Gems & Jewellery sector is one of the important sectors of Indian Economy with a contribution of around 7% to GDP, 10-12% share in the country’s total merchandise export.
It is also one of the leading sectors in terms of employment generation, providing employment to approximately 5 million skilled and semi-skilled workforce.
The government has permitted 100% FDI in the Gems & Jewellery sector under the automatic route, wherein the foreign investor or the Indian company does not require any prior approval from the Reserve Bank or Government of India.
However, the Gems and Jewellery sector has been one of the worst-hit sectors in India during the Covid-19 pandemic and its exports saw a record decline of (-) 98% in April 2020 due to the complete lockdown situation in the country.
Government of India Initiatives in Gems and Jewellery Sector:
The Government has introduced a number of reforms, such as the revamped Gold Monetisation Scheme, reduction in import duty of gold, hallmarking, etc.
Gold Monetization Scheme: It was launched in 2015 with the aim to mobilise gold held by households and institutions of the country and facilitate its use for productive purposes, and in the long run, to reduce the country’s reliance on the import of gold.
Read more: Gold hallmarking
Source: This post is based on the article “Reforms in jewellery sector to help achieve export target: Minister” published in PIB on 16th September 2021.