Unusual Gold Imports in India In

 UNUSUAL GOLD IMPORTS IN INDIA IN MARCH 2021

                            MULTIPLE FACTORS CONTRIBUTED TO THE GROWTH:

 ·        Duty cut on gold to 7.5% encouraged imports through official channels

·        Reduction in prices of gold is seen as an opportunity by investors as the current prices may not sustain in future

·        Low base effect as imports of gold in March 2020 was 28 tonnes due to outbreak of Covid -19 

·        Relaxation of lockdown norms across various export markets like USA, UK etc. and wedding season in India.

In March 2021, multiple factors contributed to the rise in imports of gold to 160 tonnes, a growth of 471% as compared to the same period last year. The growth is mainly attributed to factors like demand surge for gem and jewellery products from exports markets like the US, UK following lockdown relaxation, the wedding season in India, improved business and consumer sentiments and as well as recent sharp drop in gold prices, according to Gem and Jewellery Export Promotion Council (GJEPC).

There are many factors that pushed up the demand for gold that include festive time in domestic market and various countries during the said time; resumption of mining and exporting activities; resumption of production activities in domestic and global market; development of vaccine and start of vaccination and relaxation over the travel.

Apart from that there were various virtual gem and jewellery trade shows and buyer seller meets (VBSMs) organised by GJEPC which resulted in large orders for Indian manufacturers for varied gem and jewellery products.

While reiterating that increasing domestic demand is pushing up imports of gold, GJEPC Chairman Mr. Colin Shah said, “We should observe the overall market trends in a holistic manner in the forthcoming months to arrive at a rightful conclusion. Factors such as low base effect, reduction in Gold price, reduction in import duty may be attributed to the increased imports in the country in this period. An important observation is that from an average import of approx. 80 tonnes a year in 2018-19 is down to 50 tonnes last year.”

 The growth of gold imports is due to the low base effect as imports of gold in March 2020 was 28 tonnes due to outbreak of Covid-19. In a normal scenario, average import of gold in a month remains 60 tonnes to 80 tonnes. But, outbreak of Covid-19 in March 2020 resulted in nose dive of jewellery demand in domestic and international market and so as the import of gold in March 2020 to only 28 tonnes vis-à-vis 93 tonnes in March 2019.

“Growth in imports of gold indicates the positive sentiment in the domestic and international market. I am also expecting growth in exports of jewellery in the current fiscal.” Colin Shah added.

Additionally, the rise in demand is also impacted by the reduction in gold prices. Gold prices have seen a phenomenal drop and customers and investors see an opportunity as the current prices may not sustain in future. Gold prices have declined on an average to Rs. 40179 in March 2021 which is the lowest through the Financial Year from April 2020 to February 2021.

 

Source: Kitco

More imports of gold are taking place through official channels after the cut in gold import duty. Colin Shah comments, “The import duty reduction has encouraged imports through official channels – The gold duty cut by the Government is not much but it has helped bring duty at par with other countries and more formal import of the metal through official channel.”

Gem & Jewellery Exports witnesses a

Gem & Jewellery Exports witnesses a remarkable growth of 12.73% in Q4

 

Overall gem and jewellery exports decline by 28.46% in 2020-21

 

The financial year 2020-21 witnessed an overall decline of 28.46% to US$ 25.31 billion in the overall exports of gem and jewellery compared with US$ 35.37 bn in the fiscal year 2019-20, as per the data of the apex body The Gem and Jewellery Export Promotion Council (GJEPC). However, there is a significant increase in the exports witnessed in the last quarter of the financial year ended March 31^st 2021, with an increase of over 12.73% as compared to same period last year.

Colin Shah, Chairman, GJEPC said, “FY 2020-2021 was an exceptional year, yet the industry has shown resilience, adapted to the new normal and strived towards attaining recovery in exports in the second half of the year.  Post witnessing a decline in the first three quarters, the Gems & Jewellery Exports have witnessed a remarkable growth of 12.73% in Q4. However, the year 2020-21 ends with a 28.46% decline in overall gross exports of Gems & Jewellery It’s an achievement for the Indian gems and Jewellery industry, considering the scale and the magnitude of the COVID-19 pandemic globally.”

“While Rough import of Diamonds stabilised post opening up, the non-availability of duty free gold to jewellery manufacturers have sharply impacted the plain gold jewellery exports leading to a decline of around 60%. Improved International market Demands in the third quarter owing to a robust holiday season, stimulated manufacturing across all Gem & Jewellery product segments and overall gross exports.”

“The impact of Covid could have been severe, but I sincerely acknowledge the proactive support extended by the Central and State Govt. provided through timely relief measures and policy reforms that eased the impact of Covid-19 on the industry. GJEPC’s virtual trade shows played a significant role in the recovery of exports in 2020-21. Virtual trade shows and e commerce will continue to be the business growth drivers in 2021-2022”

·         Gem & Jewellery Performance March 2021 and from April 2020-March 2021 (Dollar Term)

 

1.  The overall gross exports of Gems & Jewellery declined by 28.46% to US$ 25.31 bn during April 2020 to March 2021 as compared to US$ 35.37 bn during the same period last year.

2.  The overall gross exports of Gems & Jewellery is showing a growth of 78.22% to US$ 3424.94 million during the month of March 2021 as compared to US$ 1921.79 million in March 2020.

3.  CPD exports April 2020 to March2021 (-) 12.13% to US$ 16401.30 mn from US$ 18664.53 mn registered during April 2019 to March 2020

4.  CPD exports March 2021 (+) 123.55 % to US$ 2158.36 mn as compared to US$ 965.48 mn in March 2020.

5.   Gold Jewellery Exports April 2020 to March 2021 (-)59.49% to US $ 4822.74 mn from US$ 11903.83 mn April 2019 to March 2020.

6.   Gold Jewellery Exports March 2021 (+) 24.81% to US$ 758.21 mn from US$ 607.49 mn March 2020

7.   Silver Jewellery Exports April 2020 to March 2021 (+)38.61% to US$ 2324.39 mn from US$ 1676.88 mn April 19 to March 2020.

8.  Coloured Gemstone Exports April 2020 to March 2021 (-)41.71% to US$ 186.75 mn from US$ 320.41 mn April 19 to March 2020.

 

·         Gem & Jewellery Export Performance March and April 2020 to March 2021 (Rupee Term)

 

1.  The overall gross exports of Gems & Jewellery declined by 25.71% to Rs. 185952.34 Cr during April 2020 to March 2021 as compared to Rs. 250319.89 Cr. during the same period last year.

2.  The overall gross exports of Gems & Jewellery is showing a growth  of 73.98% to Rs. 24729.57 Cr during the month of March 2021 as compared to Rs. 14214.24Cr. in March2020.

3.  CPD exports April 2020 to March2021 (-)8.87% to Rs. 120302.04 Cr. from Rs. 132015.25 Cr. registered during April 2019 to March 2020.

4.  CPD exports March 2021 (+) 117.58% to Rs. 15530.11 Cr as compared to Rs. 7137.69 Cr. in March 2020.

5.  Gold Jewellery Exports April 2020 to March 2021 (-) 57.89% to Rs. 35483.17 Cr from Rs. 84270.81 Cr. April 2019 to March 2020.

6.  Gold Jewellery Exports March (+) 22.50% to Rs. 5505.19 Cr. from Rs. 4493.99 Cr. March 2020.

7.  Silver Jewellery Exports April 2020 to March 2021 (+) 43.55% to Rs. 17163.03 Cr. from Rs. 11955.75 Cr.  April 2019 to March 2020.

8.  Coloured Gemstone Exports April 2020 to March 2021 (-)39.32% to Rs. 1377.30 Cr.  From Rs. 2269.69 Cr. April 2019 to March 2020.

 

Import

 

Gem & Jewellery overall Import performance  April 20 to March 2021

1.   The overall gross Import of Gems & Jewellery April 20 to March 2021 showing a decline of 32.36% to US$ 16493.18 mn from US$ 24382.46 mn registered during April 19 to March2020.

2.  The overall gross import of Rough diamonds April 2020 to March 2021 showing a decline 16.44% to US$ 10885.17 mn from US$ 13026 mn registered during April 19 to March 2020.

3. The overall gross import of CPD April 2020 to March 2021 showing a growth 27.22% to US$ 2179.26 mn from US$ 1713.02 mn registered during April 19 to March 2020.

GJEPC Seeks Special Assistance For

GJEPC Seeks  Special Assistance For Gems & Jewellery Small Scale Exporters From MSME Ministry

The GJEPC made a representation on the key focus areas pertaining to Gems & Jewellery to the Micro, Small and Medium Enterprises (MSMEs) sector to  Shri. Nitin Gadkari, Minister of MSME, Government of India, on 6th August. 

Through a virtual meet, Colin Shah, GJEPC Chairman and Vipul Shah, Vice Chairman, briefed Shri. Gadkari about the various initiatives proposed and planned by Council to boost the MSME Exporters from the sector.

India is the 5^th largest exporter of gem and jewellery in the world with exports accounting for $36.73 billion. It is a labour-intensive industry, employing 37.3 lakh.  By facilitating the infrastructure and policy reforms, the industry has the potential to grow its exports to around $70 billion.

Colin Shah, Chairman GJEPC said, “Almost 85% (5,931) of the Council members fall under the MSME category, and most of them are involved in the manufacture of handmade gold jewellery, cutting and polishing of diamonds, precious and semi-precious stones and imitation jewellery. The gems & Jewellery industry is highly labour-intensive and export-oriented, a comprehensive financial package of Rs. 900 Cr has been proposed to the Hon’ble Minister . GJEPC has plans to set up a Model Manufacturing Workshop, and is focusing on upgradation of Skill Development Programmes. Introduction of Technology Upgradation Fund (TUF) will benefit the MSME sector by enabling clusters to infuse advanced technology, which, in turn, would augment productivity, reduce costs, improve quality and spur  innovation. This will also make MSMEs ready for global competition.

The Council also discussed the challenges faced by the MSMEs to get finance and the need for Brand Promotion, showcasing India as one-stop shop for quality diamonds, gems and jewellery globally. A wholistic approach for developing the MSMEs in the sector would help the sector move to the next level of growth.”

Hon’ble Minister of MSME Shri. Nitin Gadkari said that the industry is important for the economy of the country, and the sector has great potential to scale new heights in the future.

Colin Shah, Chairman informed the Minister that the MSMEs would benefit through its multiple initiatives comprising Infrastructure Development Projects such as the Mumbai Jewellery Park and Gem Bourse in Jaipur, which would give our karigars better working conditions and state-of-the-art facilities. Common Facility Centres have been already set up in four clusters in Gujarat and are running successfully. Some more CFCs are in the process of being established in Coimbatore, Kolkata, Delhi, Rajkot, Jaipur and  Hyderabad in the near future. 

With regard to the challenges in financing faced by the sector, Shri. Gadkari said, “Under CGTME Rs.1 lakh crore grant is available, and it is a  collateral-free loan. This will resolve many problems of the MSME sector.”

Various other initiatives taken by the Ministry include:

• The Ministry is in the process of launching the SME platform of National Stock Exchange for small- and medium-sized companies with high growth potential. The SME platform of the Exchange shall be open for SMEs whose post issue paid up capital shall be less than or equal to Rs.25 crore. The platform is expected to offer a new and alternate asset class to informed investors having a longer investment horizon. The platform shall allow new, early stage ventures and small quality companies to raise much needed growth capital as they grow, mature and transit to the Exchanges’ main board. 

• The Ministry has launched a web portal CHAMPIONS to help the smaller units grow by resolving their grievances, encouraging, supporting, and hand holding them. It is a one-stop-shop solution of the MSME Ministry.

• Social Banking Finance Institute has been developed by the Ministry to provide small loans to the karigars so that they can buy machines and manufacture or produce from their homes to earn a living.

The GJEPC has been the voice of the sector for resolving the challenges related to finance, policy, etc. So far, the Council has conducted 155 seminars or workshops for  MSMEs across 11 states and 34 cities.

G&J industry takes a sigh of relief as

G&J industry takes a sigh of relief as re-import of certified diamond extended for 3 months period

Central Board of Indirect Taxes and Customs (CBIC) in its recent statement released, has extended re-import of certified diamonds for three months between February 1 till July 31, 2020

In a major relief to the Indian diamond industry, the Central Board of Indirect Taxes And Customs, Ministry of Finance, Department of Revenue, Government of India, at the behest of the Gem & Jewellery Export Promotion Council (GJEPC), announced an extension of three months on certified diamond re-imports in an official notification. The provision stated: “Provided that for the cases where the last date of re-import falls between 1st February, 2020 and the 31st July, 2020, the last date stands extended by three months”

Under normal circumstances, diamonds sent overseas for services like grading and certification do not attract any duty if they are re-imported within a period of three months. A 7.5% Customs duty is levied on the consignment if the re-import is delayed.

Given the unprecedented circumstances due to the ongoing pandemic worldwide, the Council had been pursuing with Finance Ministry for an extension of three months for such re-import. The Finance Ministry was quick in deciding to extend the duty exemption period.

Colin Shah, Chairman, GJEPC, said, “I would like to thank the Government for this quick decision taken, which will help to mitigate the effects of Covid-19 on the industry. The Government has been supporting the industry during this crisis. The latest notification on the extension of three months on re-import of certified diamonds is a great respite for our exporters.”

Vipul Shah, Vice Chairman, GJEPC said, “The trade has been reeling under the impact of Covid-19 due to which exports to key destinations have been severely impacted. In this backdrop, the extension notification will give a much-needed relief to the traders. I express my gratitude to the Government for this timely support.”

Shilpa Shetty & Manisha Koirala@ Jewellers come together

Shilpa Shetty & Manisha Koirala@ Jewellers come together to raise Rs 1 crore to help the underprivileged at the "Jewellers for Hope" event organised by GJEPC

GJEPC’s CSR initiative ‘Jewellers for Hope’

Contributes Rs 1 crore for preventing exploitation of the child

Other causes include supporting the disabled and providing for life-time interventions

Mr. Kailash Satyarthi, Nobel Prize Winner; Social activist Ms. Shaina NC; Padma Bhushan recipient Dr. D. R. Mehta; Film celebrities Shilpa Shetty, Manisha Koirala, Cricketer Zaheer Khan, Mr. Paul Rowley, Executive Vice President, Diamond Trading & Distribution, De Beers Group and Nirupa Bhatt, MD, GIA grace ‘Jewellers for Hope’ charity dinner dedicated to make a difference to the society

The Gem & Jewellery Export Promotion Council (GJEPC), in association with De Beers and Powered by Gemological Institute of America (GIA),  presented the fourth edition of  ‘Jewellers for Hope’ on August 9. A gala charity dinner with an avowed objective to collaborate and contribute for the larger cause of preventing the exploitation of the child and as well support the cause of the physically disadvantaged people at large. Mr. Kailash Satyarthi, Nobel Prize Winner; social activist Ms. Shaina NC; Padma Bhushan recipient Dr. D. R. Mehta and Bollywood icons Shilpa Shetty and Manisha Koirala along with cricketer Zaheer Khan, graced the occasion.

 Mr. Pramod Agrawal (Chairman, GJEPC), Mr. Colin Shah (Vice Chairman, GJEPC) and Mr. Paul Rowley, Executive Vice President, Diamond Trading & Distribution, De Beers Group, Ms. Nirupa Bhatt, MD GIA, hosted several Jewellers, celebrities and prominent film personalities who collectively exchanged views on the industry and at the same time take care of the needs of the society during the course of the sit-down dinner.

This year the industry has earmarked funds to support three leading NGOs – Voluntary Action Association run by Nobel Prize winner Mr. Kailash Satyarthi which works with a mission to end all forms of exploitation of children in India; Giants Welfare Association run by Social Activist Ms. Shaina NC, which supports, maintains and assists promotion of social services and projects in India and abroad and Bhagwan Mahaveer Viklang Sahayta Samiti or Jaipur Foot run under the supervision of Padma Bhushan Recipient, Dr. D.R. Mehta assisting the disabled by way of providing for artificial limbs, calipers and other aids for free. The event was hosted and curated by the inimitable Cyrus Broacha.  

Mr. Pramod Agrawal, Chairman, GJEPC addressing the distinguished guests said, the gem & jewellery industry has an impressive history of contributing generously to the development and betterment of the society, in its individual capacity and collectively. “Jewellers for Hope” is an initiative where the industry comes together for a common cause, contributing beyond its community to serve one and all. And this year we are happy to contribute and join hands for the causes that Mr. Kailash Satyarthi; Ms. Shaina NC, and Dr. D.R. Mehta have been working for. Thanks to all the donors for their generous contribution whose support will help make a difference in the lives of many.”

The Chief Guest, Mr. Paul Rowley, Executive Vice President, Diamond Trading & Distribution, De Beers Group, said, “Diamonds are the ultimate symbol of love and these miracles of nature have given hope to so many people across world. Diamond industry in India has been doing tremendous work in education, health and uplifting the marginalized sections of the society. De Beers has always been committed to welfare of its stakeholders and society. We are happy to partner with GJEPC for the Charity event that gives hope to the underprivileged and empowers the children, women and people in a great manner.”

Mr. Colin Shah, Vice Chairman, GJEPC, said, “We are thankful for the support received from our gem and jewellery partners and I am confident that we shall be also working towards improving the living standards of workers who remain the backbone of this industry. Through Swasthya Ratna, a group medical policy, GJPEC has insured 3 lakh lives since 2015. As jewelers we have a heart of gold and am happy that our Industry is poised to make a slew of positive contributions to the society.”

In 2014, “Jewellers for Hope” associated with “Make A Wish Foundation” to fulfil wishes of 1700 destitute children. In 2016, Jewellers for Hope donated to “Swades Foundation and Friends of Tribal Society which helped 4560 lives giving access to drinking water to rural household, and built household toilets in the community and educated 7224 students. And in 2017, Jewllers for Hope extended its contribution to three NGOs, namely Nanhi Kali, Girl Rising and Make a Wish Foundation; this contribution helped to improve the lives of 1166 children; 20044 girls were educated, 540 wishes granted.

NGOs with whom the Jewellers for Hope is associated this year has done an excellent job in their respective fields. Voluntary Action Association/ Bachpan Bachao Andolan has directly rescued over 86,500 children from extreme conditions of child abuse. Giants Welfare International has successfully completed Giants Blood Donation drive with approximately 1000 Blood donation camps organized by different Giants Groups spread all over India during 14th – 30th June 2018. Bhagwan Mahaveer Viklang Sahayta Samiti (BMVSS) or Jaipur Foot provides artificial limbs, calipers, wheelchairs, hand paddled tricycles, crutches and other aids and appliances to the handicapped to over 85,000 disabled in a year. BMVSS has already rehabilitated more than 1.70 million disabled by now.