Restoration of GSP status will be mutually beneficial for India & US: GJEPC’s Vipul Shah

MUMBAI: Talking about how the historical ties between India and USA have grown stronger over time, Vipul Shah, Chairman, Gem & Jewellery Exports Promotion Council (GJEPC), on Tuesday said the termination of India’s Generalised System of Preferences (GSP) designation by the USA has impacted exports. “Exports of around 45 gem and jewellery commodities, which were previously enjoying duty-free benefits, are now attracting duties in the USA,” he said, while delivering the inaugural address at the India International Jewellery Show (IIJS) Premiere 2023, a five-day B2B gems and jewellery exhibition organised by the GJEPC in Mumbai.

Urging Mike Hankey, Consul General, Consulate General of the USA, to look into the matter, Shah stated this would be useful in creating mutually beneficial trade. “The USA accounts for 33% of India’s gem and jewellery exports. We hope to foster an environment that will facilitate a beneficial relationship between our two nations,” he said.

The Trump administration had revoked the GSP from India in 2019. Approximately 1,900 Indian products from sectors such as chemicals and engineering were able to get duty-free access to the US market under the GSP. Commerce and Industry Minister Piyush Goyal had in June said India and US have agreed to discuss New Delhi’s demand for the restoration of GSP benefits to domestic exporters, a PTI report had stated.

Hankey highlighted how trade between the two nations is hugely significant. “India exports about $20 billion a year in gems and jewellery to the US, making it the biggest market for India, and we treasure that. Growth in trade bilaterally grew 40% to $190 billion last year making the US the number 1 trading partner for India. Most of the finished diamonds in jewellery are coming through India. Retail market in the US and the production market in India are inextricably linked. These linkages offer us yet another pillar to brace this relationship between the two countries,” he said.

The 39th edition of the IIJS Premiere is being organised for the first time at two venues in the financial capital — the Jim World Convention Centre and the Bombay Exhibition Centre. “From its humble beginnings in 1985 as ‘Jewel Yatra’, featuring just 25 exhibitors at the Taj Mahal Palace, Mumbai, the show has evolved over the years to be the second-largest show worldwide,” Shah said.

The exhibition serves as a platform for the industry’s biggest gathering of domestic and international buyers, helping Indian jewellery manufacturers network with a cross section of retailers. It received 42,000 pre-registrations this year, with visitors from over 65 countries attending the event.Disclaimer: The reporter is on a GJEPC sponsored trip to Mumbai

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