Summary
The New Elected Govt. of India has presented new aid program for Indian Gem and Jewellery Exporters. With this aid govt. will try to help exporters to cope up with real bad time.
Analysis
Indian back bone of exports seeks a valuable help from a New Elected gov.t which will help them to servive in this condition.
Business Standard reports that with a view to ease the pressure on the beleaguered gems and jewellery sector, especially the diamond industry, representatives of Gems and Jewellery Export Council (GJEPC) has urged the finance ministry to make profits from exports of the industry tax-free for the last two years.
Union finance minister Pranab Mukherjee met industry representatives to seek pre-budget suggestions from the industry. "We have sought a tax exemption on the export profits for two years on gems and jewellery industry", said Vasant Mehta, chairman, GJEPC.
Availability of finance is yet another problem the sector in general and diamond industry in particular is facing. "We informed the finance minister the diamond industry is facing tough times due to recession. Around 400,000 workers have already lost their jobs. The industry needs finance to survive. As a result, we have demanded dollar finance for the two years," said Chandrakant Sanghvi, regional convener, GJEPC.
Presently, industry players are charged 5 percent to 6 percent on finance from the international market, while in rupee terms the interest works out to 9 percent. "We want the government to provide the industry international parity in interest rates. In dollar terms, we think the rate should be 3.50 percent to 4 percent, while in rupee terms it should fall to 6 percent from 9 percent", Mehta added.
Other suggestions made by representatives of the industry include a 1 percent turnover tax when the industry is back on track and extension of interest subvention for another two years.
Industry need to have some real support so that it will ease the pressure completely and help them to raise business.
