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India extends dollar scheme to jewellery exporters

EXIM POLICY

India announced on Saturday it would allow diamond-studded jewellery exporters with turnover of at least Rs 50 million to keep their earnings in dollars to buy raw materials.

The announcement came as the government released its 2001-02 trade policy.

Earlier the diamond dollar account scheme (DDAS) was available to only to diamond exporters.

The government said in a statement the scheme would be extended to "diamond studded jewellery exporters having an annual turnover of Rs 50 million or above during the preceding three licensing years".

The DDAS holders can operate five bank accounts, up from two accounts allowed earlier.

Dealers welcomed the move, saying it would increase jewellery exports and make trade more lucrative.

"It is a welcome decision...it would help the jewellery exporters," said V M Kapoor, a Bombay-based leading jewellery exporter.

India's gem and jewellery exports, which account for 15 to 20 per cent of its total exports, were worth $8.03 billion in 1999-2000 (April-March).

The government also doubled the time for repayment of gold loan to 180 days.

"(The policy gives) more flexibility to exporters under the gold loan scheme by allowing exporters to fix the price and repay the gold loan with 180 days from the date of exports," it said.

"Extension of the period up to 180 days will give more flexibility to bullion traders in performing their export obligations," Kapoor said.

Exporters have also been allowed to personally carry gems and jewellery of a value not exceeding $2.0 million for participating in overseas exhibition.

ALSO READ:
Exim Policy 2001-2002: Full coverage
Union Budget 2001-2002: Full coverage

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