Sez's in Gems and Jewelery

Topics: Special Economic Zone, Diamond, International trade Pages: 10 (3256 words) Published: December 7, 2010
Gems and Jewellery have been a part of the Indian civilization since its recorded history. It has now grown to become one of the leading export oriented industries in India recording an export turnover of around Rs 91617.53 Crores during 2008-09, making it a significant foreign exchange earner for the country. By the formation of SEZ in gems and jewellery in India it improved the contribution of industry at 70% of the World gems in terms of quantity and 45% in terms of value. By this the formations rules for setting up an industry have been made easy, government has given many advantages to the companies in SEZ’s. The potential and salient features of gems and jewellery have been drastically increasing in the recent years. The present SEZ’s and upcoming SEZ’s in the gems and jewellery industry the companies advantages from SEZ’s are noted. Recommendations which are done by industry to the government for the improvement of the gems and jewellery industries are also mentioned. At last the requirements needed for the setting up a SEZ are also put in this assignment.

“Special Economic Zones are Specific geographical regions with economic laws that are more liberal than a country’s typical economic laws” –Masami Ishida, ERIA The main objective of SEZ is to “Increase in Exports” of the country in a specific sector (sector specific SEZ) or various sectors (multi product SEZ) by providing State of the Art Infrastructure. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes. Domestic regulations, restrictions and infrastructure inadequacies are sought to be eliminated in the SEZs for creating a hassle free sought to be eliminated in the SEZs for creating a hassle free environment. The SEZ policy in India was come from the EXIM Policy (1997-2002) introduced a new scheme from April 1, 2000 for establishment of the Special Economic Zones (SEZs). The policy was succeeded by SEZ Act 2005 envisaging role for the State Government in creation of SEZ infrastructure role for the State Government in creation of SEZ infrastructure.

•Simplified procedures for development, operation and maintenance of the SEZs and for setting up units. •Single Window Clearance provided for setting up SEZ, matters related to central and state governments. •Simplified compliance procedures and documentation with emphasis on self certification.

Gems and jewellery industry in India is rising like the morning sun in the sky, with the most glistening shine by being the greatest manufacturing center for gems and jewellery where the domestic market was guessed to be approximately USD16.1 billion in financial year 2009. Not only this, in the year 2010 India outshined as the world’s largest trading center of gold with USD16 billion. It fills us with surprise when we come to know that India depletes 20% of the world gold consumption making it the largest consumer of gold in the whole world. To instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime there by generating greater economic activity and employment through the establishment of SEZs, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholders. A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose. The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The draft SEZ Rules were widely...
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