Have proposed separate HS code for natural and lab-grown diamonds, says Vipul Shah, GJPEC chairman

How far will the India Internetional Jewellery Week (IIJW) be helpful in making India a global jewellery market?
Shows like IIJW definitely help us achieve our overall goals and establish India as the most sought after destination for jewellery globally. We are promoting young designers to showcase their talent, design and give India unique place in the world market. This is the platform where all important jewellers have their own talented designers, where they display their design to the world.

Do you think jewelry e-commerce is the future of the gems & jewellery sector, as lots of jewellers are focusing on this area?
Undoubtedly, it has a bright future. Online is the trend right now. A lot of jewellery is being bought online. Many of our members are doing online business and marketing their unique pieces on various portals. They had recently tied up with all the leading portals.

The net export of gems & jewellery in the April-June quarter of this fiscal has come down 10.48% compared to the corresponding period of the previous year. In May alone, the drop is 5.09%. What is the reason?
There is a slowdown because of the global economic slowdown, mainly in China. India's domestic market has also been slow because of black money law that has mandated Permanent Account Number (PAN). Consumers are shy to come out in the open to buy heavy jewellery. On top of that, the Eurozone crisis has also impacted our exports. There is no demand across the globe for gems and jewellery. Market is in a standstill mode.

GJEPC has been demanding import duty cut, without any result so far. Now that gold prices have come down to an attractive level, do you think duty cut is required?
The 10% import duty on gold has remained the same for last two years. We are in constant talks with the government that the duty needs to be slashed down. However, yellow metal has come down to an attractive level. It would bring customers to the fore to buy jewellery. I am personally confident that this exhibition will be a game changer for the industry. This will lead the industry and export further.

What were your priorities for GJEPC to improve the entire gems and jewellery sector?
The main focus of the Board was to create demand, to create platform, to help our members promote the sales of diamond jewellery. We keep on doing buyer-seller meets, exhibitions, focusing on colour gems stones. With activities like IIJW, we are doing constantly to enhance the demand.

Surat, which houses the largest diamond industry in the country, was under the scanner after huge amount of undisclosed mixing of synthetic diamonds in the natural diamond parcels. How do you view the allegations?
There is a lot of gossip flying around, instilling unnecessary fear among customers. I do not see any fear as all our research and detailed surveys are in place. However, there is a certain amount of undisclosed mixing that cannot be ignored. The council has already provided detection machines in Bharat Diamond Bourse (BDB) and Surat Diamond Bourse (SDB). These are well-equipped machines to detect synthetic diamonds.

What are the measures Board has taken to overcome the situation?
We have taken action against a couple of traders in Surat, who are dealing in this business without proper disclosure. Members who were caught doing such practices have also been suspended. To overlook the case, a natural diamond monitoring committee (NDMC) has been formed by BDB, GJPEC and SDB associations. Any member who is found guilty can be called for investigation and can immediately be penalised and barred from doing business. We are also geared up for the latest technology for detection and fast differentiation. We are not against the business but against unethical practices in the sector.

Have you made any recommendation to the government recently for the revival of the sector? Do you think some changes are required on the policy front?
We have proposed the central government for introducing separate Harmonised System (HS) code and duty structure right from import duty to VAT for natural and lab-grown diamonds, so as to create differentiation at each level to ensure integrity of the Indian diamond industry.