The gem and jewellery sector contributes significantly to the economy of the country in terms of exports as well as employment generation. In the year 2017-18, the gem and jewellery exports was 13.69% of total merchandise exports from the country. As per estimates, the sector provides employment to around 5 million people.

During the financial year 2018-19 (upto November, 2018), the gem and jewellery exports are USD 27.05 Billion as compared to USD 28.02 Billion during the corresponding period in previous year, showing decline of 3.46%.

During the year 2017-18, gem and jewellery exports were USD 41.54 billion as compared to USD 43.41 Billion, showing decline of 4.3%.

With a view to strengthen the gems and jewellery industry, the Government has taken a number of steps, such as establishment of Special Notified Zone (SNZ), setting up of common facility centres for gems and jewellery sector, creation of separate ITC HS Code for lab grown diamond, reduction of GST rates for cut and polished diamonds and precious stones, exempting IGST on import of gold by specified agencies and banks, Exemption from GST on supply of gold by Nominated Agencies to exporters  and providing financial assistance for participation of international fairs, for organizing buyer seller meets, creation of export related infrastructure etc. under various schemes of Department of Commerce.  Further, issues raised by the industry are resolved from time to time to improve ease of doing business.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha today.

Tax and trade measures bolster gems and jewellery sector through GST and import exemptions plus export support programs. To strengthen the gems and jewellery industry, the Government has implemented regulatory and fiscal measures including establishment of Special Notified Zones, creation of common facility centres, introduction of a separate ITC HS Code for lab-grown diamonds, reduction of GST rates on cut and polished diamonds and precious stones, IGST exemption on gold imports by specified agencies and banks, GST exemption on supply of gold by Nominated Agencies to exporters, and financial assistance for international fairs, buyer-seller meets and export infrastructure.