Government Measures to Support Exporters in the Gems & Jewellery Sector
The government has introduced measures to enhance competitiveness and support exporters, particularly in the gems & jewellery sector, amidst global trade uncertainties.
Revised Duty Drawback Rates
- The duty drawback rates for gold and silver jewellery have been increased.
- Gold jewellery rate increased from ₹335.5 per gram to ₹405.4 per gram.
- The scheme refunds import taxes on goods manufactured in India and then exported.
₹2,250 Crore Export Promotion Mission
The Ministry of Commerce and Industry has finalized a proposal for the ₹2,250 crore Export Promotion Mission, aimed at supporting exporters.
- The proposal is drafted as an Expenditure Finance Committee (EFC) note and is expected to be approved soon, followed by Union Cabinet clearance.
Impact of U.S. Tariff Policy
The imposition of additional U.S. tariffs on Indian goods has increased costs for exporters, prompting renegotiations on contracts and impacting new orders.
Plans Under the Export Promotion Mission
- Revival of the Interest Equalisation Scheme (IES) and Market Access Initiative (MAI).
- New programs for small exporters to:
- Access collateral-free loans.
- Cover costs of complying with non-tariff measures by developed nations.
- Promote alternative financing tools like cross-border factoring.
- Assist with high-risk markets.
Interest Equalisation Scheme (IES)
The IES offers concessional interest rates to exporters on their export credits, compensating lenders for the difference. It has been extended periodically since its launch in 2015.
Future Directions
- Commerce department is likely to seek additional funds for schemes benefiting MSME exporters.
- Significant changes to the IES will be evaluated based on available funds.