Gems, jewellery exporters seek urgent govt relief as US tariffs hit industry
Kolkata (PTI): The Gems and Jewellery Export Promotion Council (GJEPC) has urged the Centre to provide immediate relief measures as the tariffs imposed by the United States have started hitting the industry.
US tariffs of 50 per cent on Indian goods came into effect on August 27.
GJEPC Executive Director Sabyasachi Ray told PTI that exporters had "front-loaded" shipments to the US, anticipating tariff action, but the unexpected penal duty has left the industry reeling.
"The market will be hit further if the concerns are not addressed within a quarter. A lot of demand had already been shipped to the US market before the tariff was implemented.
"Now the industry requires immediate extension of credit timelines from 90 days to say 180 days or more, moratorium in installment payment and interest equalisation to provide respite immediately," he said.
Front-loading is the accelerated shipment of goods to their destination before an expected disruption, such as a tariff increase, labour strike, or other regulatory change.
Ray was in Kolkata to attend a conclave organised by the Indian Chamber of Commerce (ICC) on the diamond industry.
According to the GJEPC, overall gross exports of gems and jewellery witnessed an increase of 15.98 per cent to USD 2.17 billion in July, and overall gross imports grew 26.55 per cent to USD 1.8 billion.
The US remains India's largest market for diamonds, and the fallout of the tariffs is expected to be severe on Surat, which accounts for nearly 90 per cent of the world's diamond processing and directly employs about two lakh workers.
The export promotion council submitted a detailed memorandum to the government on August 28, seeking policy, monetary, and banking interventions to help exporters withstand the disruption.
Among its key demands, GJEPC has sought an extension of the export obligation period under duty-free gold import schemes from 90 days to six months for exports to the US, and permission for SEZ units to undertake reverse job work and offload inventory into the domestic market.
On the monetary front, the industry has recommended a reimbursement mechanism covering 25-50 per cent of the additional US tariffs for the August-December 2025 period, and enhanced market access assistance for participation in global exhibitions and promotion of Indian jewellery abroad.
The memorandum also calls for deferment of interest on working capital loans, a six-month moratorium on packing credit loans related to US exports, reintroduction of the interest equalisation scheme for exporters, and extension of pre-shipment finance by 90 days.
With exports slowing and orders being cancelled, GJEPC has highlighted the risk of job losses and urged support measures for workers, including restructuring of personal loans, education grants for girl children, and temporary coverage under the Ayushman Bharat scheme.
Ray expressed hope that the "penal tariff" would be short-lived.
"We believe an understanding of the larger dimensions of the India-US relationship will eventually prevail," he added.
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NIA registers case to probe recovery of 79 crude bombs in poll-bound West Bengal
New Delhi (PTI): The National Investigation Agency (NIA) on Sunday registered a case to probe recovery of 79 crude bombs in poll-bound West Bengal, officials said.
The move came following a directive by the Union Home Ministry in this regard, they said.
In pursuance to the home ministry's order, the anti-terror agency on Sunday registered a case, which was originally filed at Uttar Kashi police station, Bhangar division, Kolkata on Saturday, and took up the investigation, an NIA spokesperson said in a late night statement.
"The case pertains to recovery of 79 crude bombs and other incriminating materials by Kolkata police, which were being stored at a spot, thereby endangering human life and property," the spokesperson said.
Earlier in the day, the Election Commission had directed the West Bengal Police to launch a special drive to arrest those involved in illegal manufacturing of crude bombs in the poll-bound state, an official said.
It asserted that all cases related to the making of any such explosive would be probed by the National Investigation Agency, the official said.
The directive came after the police recovered a large number of crude bombs from the house of a person, allegedly a TMC worker, at Bhangar in South 24 Parganas district, days ahead of the second and final phase of the assembly polls in the state.
The explosives were recovered during a search at the residence of Rafikul Islam following specific inputs, the official said.
The poll panel also issued a warning to senior police officers across the state over any lapse in maintaining law and order before the April 29 polling.
The first phase of the assembly elections in West Bengal was held on April 23, while the second phase will take place on April 29. Votes will be counted on May 4.
A record 93.19 per cent turnout has been recorded in the first round of polling. Bhangar will vote in the second phase.
