India should take steps to ensure a direct access to Pakistan’s gold jewellery markets to compensate for its export deficit to European countries recommended the Federation of Indian Exports Organizations (FIEO) set up by the Union Commerce Ministry in its recent report on “Export Competitiveness of Gujarat-Vision 2020”.
The report, while dealing with diamond, gems and jewellery sector of Indian state of Gujarat, states, “As it is in the negative list, direct access is not allowed, the precious yellow metal is being routed through a third country including Sri Lanka, United Arab Emirates and other Asian countries. Direct access to Pakistan’s jewellery markets will partly compensate the export deficit to European countries which has declined significantly due to the ongoing economic crisis in the euro zone region.”
A major recommendation made in the report for promoting the gems and jewellery sector of the state is setting up of special economic zones (SEZs) in Rajkot and Junagadh that are also identified as major hubs of jewellery manufacturing. It has also been underlined that there is a need to develop housing or hostel facilities for diamond workers in Surat.
A major shortcoming listed by FIEO is that despite the sector being very important with a huge market potential, financing and loans available from banks are not smooth and are discouraging since the business is considered risky, especially for the small and medium enterprise segment that needs funds to explore new markets. There is also a demand for starting an airport cargo hub at Surat so that diamond exporters need not depend on Mumbai and Ahmedabad airports for their export operations, the report said.
A need for expanding the Surat SEZ has also been highlighted where 250 units are working at present. “If there is an extension of land, additional 200 units can be accommodated that can increase exports to around Rs 20,000-30,000 crore,” the report said.
