English Release 19-June 2013
- Presidents Secretariat
- President of India to visit Tripura from June 20 to 21
- Prime Minister's Office
- PM announces 1000 crore rupee disaster relief for Uttarakhand
- PM congratulates President-elect Rowhani of Iran
- Min of Comm. & Information Technology
Extension of time for receiving comments on draft amendments to the Interconnection Regulations applicable for Digital Addressable Cable Television Systems (DAS) and Tariff Order applicable for all addressable systems
- Min of Consumer Affairs, Food & Public Distribution
National Consumer Helpline Records 12,704 Calls in may, 2013
- Min of Defence
- Armed Forces Mount Massive Relief Operations in Uttarakhand and Himachal
- Ministry of Finance
Government Approves 1 Proposal of Foreign Direct Investment Amounting to About Rs.7.00 Crore
- India and World Bank Sign Us$ 216 Million Agreement
for Kerala State Transport Project
- Min of Health and Family Welfare
- Smt. Santosh Chowdhary takes over as Minister of State for Health and Family Welfare
- Min of Human Resource Development
- MoS for HRD Shri Jitin Prasada visits Seoul International Book Fair (SIBF) 2013
- HRD Ministry to Strengthen Monitoring System of Mid Day Meal Scheme
- Min of Petroleum & Natural Gas
- MoPNG rebuts allegations regarding KG D-6 Field
- International crude oil price of Indian Basket declines to
103.20/US$ bbl on 18.6.2013
- Ministry of Railways
- Commodity-Wise Freight Revenue by Railways Goes up by 8.66 Per Cent During April-May 2013
- Shri Mallikarjun Kharge Takes Over as Minister of Railways
- Min of Shipping
Jawaharlal Nehru Port Trust Signs Concession Agreement with M/s. Nhava Sheva (India) Gateway Terminal Pvt. Ltd
- Min of Textiles
- K S Rao Takes Charge as New Textiles Minister
- Ministry of Tourism
- Tourism Minister Announces New Campaign to Promote Himalayas
Ministry of Commerce & Industry12-February, 2013 18:10 IST
|India Poised to be the Leading International Trading Hub for Rough Diamonds |
Task Group report to make recommendations to help India retain its primacy as a trading hub
|Shri Anand Sharma, Union Minister of Commerce, Industry and Textiles accepted and unveiled a Task Group report to make India an International Trading hub for rough diamonds. The task group on diamonds was constituted by the Minister of Commerce, Industries and Textiles under the Chairmanship of Director General of Foreign Trade, Dr. Anup K. Pujari keeping in view the slump in exports of diamonds from India through the last few quarters. |
Some of the recommendations in report include setting up of a Special Notified Zone for import and trading of rough diamonds, permission to import cut and polished diamonds duty free up to the extent of 15% of the average of previous 3 years’ exports and reducing the rate of computation of profit under Benign Assessment Procedure (BAP) from 6% to 2.5%, amongst others.
Commenting on the report, Shri Sharma mentioned that “The conscience of the Indian diamond sector and the commitment of Indian government for clean and responsible diamond trading is really high. Some mischievous and malicious elements of late have been trying to malign the perception of the Indian Diamond Sector, which the Indian Government will not allow.
India is the largest diamond cutting and polishing center in the world, committed to continuing as a responsible and active member of the Kimberley Process Certification System by implementing all its regulations. Very few countries are having such an impeccable record and the world would not have been able to reach less than 1% trading of conflict diamonds, if India would not have vouched for the same so steadfastly.”
The task group which comprised of members, both from the Government and Industry, did an extensive review of the issues related to the trade facilitation, taxation, fiscal measures and promotional matters related to the Indian diamond industry in line with such practices prevalent at other global diamond centres.
This report is of great importance to the Government as India currently enjoys the status of the foremost hub for manufacturing of diamonds in the world. Diamond Exports is also a major contributor to the merchandise exports of the country. It also employs a large number of people from the underprivileged section of the society in India.
Shri Sharma appreciated the suggestions of the Task Group to help India retain its primacy as a trading hub, committed to take up the recommendations, which have been put forward with the concerned departments of the Govt. in a time bound manner so as to decrease the transaction cost of exports, simplify the compliance of the trade with taxation authorities and benefit the trade with the natural resources that is emanating out of India. The Minister also noted that the Ministry had already issued the necessary orders to implement certain pertinent demands of the industry immediately after the same have been demanded by the industry, like granting of bonded warehouse facility for diamonds which had been necessitated due to the imposition of 2% import duty on cut & polished diamonds.
Some of the salient recommendations of the task group are:
- Reducing the rate of computation of profit under Benign Assessment Procedure (BAP) from 6% to 2.5%.
- 15% duty free re-import quota for import of cut and polished diamonds
- Setting up of a Special Notified Zone for import and trading of rough diamonds
- Establishment of a USD 3-5 billion fund for banks to refinance their dollar loans to the industry
- Extending the 2% interest subvention scheme to the industry, as most diamond manufacturing companies do not fall under the current scheme
- Continuation of the system of Honorary Valuation Panels for the diamond sector
- Defining a beneficiation policy for diamonds mined in India
- Setting up of a Rs 200 crore Technological Upgradation Fund Scheme (TUFS)
- Establishment of a fund in partnership with the industry for generic promotion of diamonds and promotion of diamonds
- Other procedural related suggestions to reduce transaction costs of exports
The industry commended the proactive role of the government in trying to solve the industry specific issues and anticipates that the recommendations will be implemented within the specified time period as to be decided by the government.
(Release ID :92186)