Shiv Kumar
Tribune News Service
Mumbai, June 24
Export of cut and polished diamonds from India to the United States is expected to be hit following President Donald Trump’s decision to withdraw benefits under Generalised System of Preference (GSP).
According to the data available from the Gem and Jewellery Export Promotion Council (GJEPC), the US accounted for nearly half of the total of India’s export of cut and polished diamonds valued at nearly $24 bn.
Indian exports of cut and polished diamonds to the US will be costlier by around 7-8 per cent following the withdrawal of GSP benefits, according to rating agency CRISIL.
The withdrawal of GSP benefits to India adds to the woes of diamond exporters who are reeling under reduced credit facilities from financial institutions following frauds by diamond merchants Mehul Choksi and Nirav Modi, according to those in the trade.
Sources at GJEPC say the American government’s decision to remove all distinction between natural and manmade diamonds has also affected the export of cut and polished diamonds.
Those in the trade say the US has been progressively raising tariffs against Indian exports of gem and jewellery which has resulted in suppliers from the sub-continent being rendered non-competitive in that market.
Withdrawal of GSP benefits on some items of jewellery from 2007 to 2009 caused their exports to fall by nearly 25 per cent over a 10-year period, according to GJEPC officials.
The exporters demand that the Indian government grant them 4 per cent subsidy under the Merchandise Exports from India Scheme (MEIS) in the forthcoming budget to offset the higher tariffs following withdrawal of GSP benefits by the US.
Box: Exporters seek 4 pc subsidy
The US accounts for nearly half of the total of India’s export of cut and polished diamonds valued at nearly $24 bn
Indian exports of cut and polished diamonds to the US will be costlier by around 7-8 per cent following withdrawal of GSP benefits
Exporters demand that the Indian government grant them 4 per cent subsidy under the Merchandise Exports from India Scheme in the forthcoming Budget
from The Tribune http://bit.ly/31RYOnz
via Today’s News Headlines
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