In a high-level meeting at the Reserve Bank of India (RBI) Central Office in Mumbai, the Gem & Jewellery Export Promotion Council (GJEPC) urged the central bank to ease banking norms and regulatory frameworks. Led by Executive Director Sabyasachi Ray and BITC Convener Mital Doshi, the GJEPC delegation met with RBI Governor Sanjay Malhotra and Deputy Governor Rohit Jain to present a comprehensive roadmap aimed at boosting India’s gem and jewellery exports, lowering transaction costs, and enhancing global competitiveness.

The GJEPC’s proposals focus heavily on optimizing working capital, resolving systemic bottlenecks, and updating rules to align with modern trading realities:

• Easing Import & Advance Remittances: To secure easier access to raw materials, the Council requested a calibrated relaxation allowing advance remittances of up to US$500,000 for gold imports from OECD- and LBMA-approved suppliers. They also requested permission for advance payments on critical manufacturing inputs like findings and mountings.
• Systemic and Digital Integration: Highlighting persistent operational issues within the IDPMS and EDPMS systems (specifically legacy entries affecting credit access), GJEPC proposed a deeper integration between RBI, DGFT, and Customs systems to eliminate delays.
• Support for MSMEs and Standardized Banking: The Council urged the RBI to mandate reasonable banking service charges for MSME exporters. Furthermore, they called for uniform implementation across Authorised Dealer (AD) Banks regarding the regularisation of low-value export shipping bills (up to Rs. 10 lakh) and the revised FEMA regulations.
• E-commerce and Returns Framework: To support the rapid rise of online jewellery retail, GJEPC requested clear, uniform guidelines for handling returned overseas goods and refunding export proceeds, especially for low-value items or items warehoused abroad.
• Extension of Realisation Periods: GJEPC advocated for restoring the export proceeds realisation period for Special Economic Zone (SEZ) units from 9 months back to 12 months. The Council noted that shorter timelines weaken India’s position against rival hubs like the UAE, Hong Kong, and Thailand, which accommodate the industry’s inherently longer credit cycles.
• Dual-Framework for Gold: A key proposal involves creating a clear regulatory distinction between domestic gold and export gold. GJEPC suggested that export-linked Gold Metal Loans operate under a separate framework to protect export production.

In response, RBI officials highlighted several ongoing and upcoming initiatives designed to facilitate smoother trade and improve credit flow:

Key RBI Takeaways:

• FEMA Overhaul: Revised FEMA (Export and Import of Goods and Services) Regulations are set to take effect on 1 October 2026.
• Trade Liberalization: Continued enhancements to EDPMS, liberalized norms for overseas warehouses, and the active promotion of INR trade settlements.
• MSME & Credit Support: Implementation of a revised interest subvention scheme, lower risk weights, and enhanced prudential norms to boost export credit availability while ensuring bank charges remain fair.