Mumbai: Faced with a sharp decline in exports owing to removal from the European Union's (EU's) preferential list, Indian jewellers plan to woo buyers by introducing exclusive hand-crafted designs into the market. In May, the Gems & Jewellery Export Promotion Council (GJEPC) would be organising a visit of around three dozen manufacturers and exporters to the EU to help attract customers. Organisers would be targeting importers from Britain, France, Belgium and Germany.
Gems and jewellery export to the European Union worth upwards of $3 billion a year is at risk due to the country’s exclusion in the list of Generalized System of Preferences (GSP), a practice which offers tax incentives from origin to destination countries.
India enjoyed customs duty benefits to the tune of 2.5-4 per cent and value added tax between 20 and 25 per cent in various countries in the EU in the last three years of the GSP regime, ending this month. As a result, India’s gems and jewellery export jumped to $3.6 billion in 2014-15, though it then declined by 10 per cent to $3.2 bn 2015-16, due to unfavourable market conditions.
