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GEMS & JEWELLERY

The Budget moots an experts' body for framing policy guidelines and wooing NRI investments.

The gems and jewellery sector "� one of the largest contributors to the country's foreign exchange kitty "� received a major shot in the arm from Union Finance Minister P Chidambaram, who has recommended the setting up of an experts' body to assess the sector's potential with a view to "developing India as a hub for the gems and jewellery industry".

"I, therefore, propose to constitute an experts' body that will look into the potential of this sector and the prevalent taxation practices in India and abroad, and make recommendations," said Chidambaram.

Terming the impact of the overall Budget as "positive" for the industry, Bakul Mehta, chairman, Gems & Jewellery Export Promotion Council, said the experts' body will comprise seven members "� two from the industry and remaining from the ministries of trade, commerce and finance. A chartered accountant will also be hired to study the nitty gritty for the benefit of the industry.

While Mehta is happy that the sector's "expectations have been met", the finance minister is sanguine that his proposal will attract investments from non-resident Indians (NRIs) who are looking to India as the place for future expansion and growth.

The $15-billion industry is expecting $3 billion investment from NRIs this year, if the experts' body's report is implemented in totality. The industry, which is currently growing at an average 20 per cent, will sparkle once foreign investments start flowing in, Mehta added.

"We are happy with the impetus and support that the government has shown. The setting up of an experts' body is a much-needed step in that direction. I'm sure that our industry will respond very enthusiastically to this," said Tehmasp Printer, managing director, International Gemological Institute.