India’s apex body Assocham notes it is necessary for the Indian government to extend incentives like interest subvention, Merchandise Exports from India Scheme (MEIS) and others, thereby encouraging the gem and jewellery sector growth, in light of the global slowdown effects it has faced, reports say. This it published in its study entitled ‘2015-16: A year of dismal export performance for India,’ prepared by Assocham Economic Research Bureau (AERB).

Assocham notes that the sector could likely be under pressure for sometime despite some improvement signs being observed in the US market.

In the report Assocham notes that imports of rough diamonds and semi-precious stones dipped 11 per cent in FY16, net diamond exports and semi-precious stones slipped around 43 per cent and jewellery exports were lower by around 17 percent, reports add. The gem and jewellery sector being a major contributor to the country’s overall exports and employees a significant number of workers and artisans.

Assocham suggested that he sector be given industry status to encourage investments and reduce operation costs, which in turn would spur faith and repute of the Indian brands in global markets and fulfil the goals of Make-in-India, reports add. Other suggestions included the modernisation of labour laws, requirement of more export-oriented economic zones, establishment of a gold board, ensuring access to better financing, relaxation of certain taxation laws, segregation of investment and consumption demand, setting up a gold tourism circuit, as per reports. Also, the Gold Monetization Scheme could held recue dependence on gold imports show some positive outcome in the year ahead for the industry.