JB Insights
Let us continue to harness our collective strengths, seize emerging opportunities, and embrace change with enthusiasm.
Let us uphold our legacy of craftsmanship and integrity, and propel the industry towards unparalleled success – Vipul Shah
The Indian gem and jewellery sector is a force to reckon with in the international GJ market. GJEPC has been the apex body driving India’s export-led growth in the gem and jewellery sector since 1966.Vipul Shah, Chairman GJEPC speaks to JewelBuzz on the initiatives, strategies for growth of the GJ industry, impact of geopolitical crisis on GJ sector and government policies and regulatory frameworks aiding the growth of Indian GJ sector.

Take us through the GJEPC roadmap for the year 2024—events and initiatives, strategies for growth of the GJ industry.
GJEPC is focused on growing India’s share of the global gem and jewellery pie. The Council also has a dual focus of driving export growth and creating job opportunities in the industry. Despite challenges faced in 2023, the industry is optimistic for the year 2024.
Efforts are directed towards sustaining and increasing exports to major markets like the USA, Hong Kong, and UAE. Additionally, the industry is exploring new markets such as the UK, Italy, France, Latin America, and Cambodia among many others.
Marketing efforts will be intensified to promote Indian gems and jewellery globally. This includes organising the IIJS, the India International Gem & Jewellery Show (IGJS) in Dubai and Jaipur, actively participating in major international gem and jewellery exhibitions; and facilitating product-specific and market-specific Buyer Seller Meets.
There is also a focus on investing in technology and innovation to enhance productivity, efficiency, and competitiveness. GJEPC, in collaboration with the Ministry of Commerce & Industry and SEEPZ, has launched a Mega Common Facility Center in SEEPZ Mumbai. This initiative aims to increase manufacturing capacities, drive technological advancements, and provide extensive skill development opportunities. Importantly, the services offered will benefit both SEEPZ and Domestic Tariff Area (DTA) units, reflecting inclusivity and industry-wide progress.
The geopolitical crisis and G7 sanctions banning Russian diamonds are major concerns. What is the impact on Indian diamond industry with the manufacturing sector affected drastically with shortage of rough diamonds?
The G7/EU has considered March 1st to August 31st as the “Sunrise Period.” During this phase, the US has opted for self-certification for import shipment clearance, while the EU provides two alternatives: G7 certification and a documentary evidence-based system, facilitating Indian trade in importing goods directly to India using the documentary evidence option. Certain countries allow Mixed Origin relaxation, subject to documentary evidence. The UK has provided clarification on Grandfathering diamonds movement and the necessary procedures. As of March 1, 2024, the immediate impact of G7 sanctions appears relatively manageable, with the industry adjusting to uphold support documents, coordinate two supply chains, and comprehend country-specific requirements for legal compliance. While it is still early, being only 3 weeks into the sanctions, inquiries and feedback from members are being actively received and assessed to gain a comprehensive understanding of the situation.
How are government policies and regulatory frameworks aiding the growth of Indian GJ sector?
Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as a focus area for export promotion. Over the years, through trade-friendly policies, the government has facilitated a remarkable surge in gem and jewellery exports, which now stand at USD 40 billion.
The recent Free Trade Agreements with key partners such as the UAE, Australia, and the European Free Trade Association (EFTA) countries—Switzerland, Iceland, Norway, and Liechtenstein—hold substantial promise for further boosting Indian gem and jewellery exports.
However, to enhance the industry’s competitiveness in global markets and ensure sustainable development, several measures have been proposed to the government:
- Safe harbour rule for sale of rough diamonds in Special Notified Zones (SNZs)
- Introduction of Diamond Imprest License and reduction in import duty on cut & polished diamonds to 2.5%
- Reduction in import duty on gold/silver/platinum bars to 4%
- Introduction of a mechanism like “Rates & Taxes Refund” through EDI system similar to GST refund.

Despite the various challenges there is always a positive spirit. What is your message to the GJ industry?
Despite facing challenges, the Indian gem and jewellery industry has always shown resilience, relying on its renowned craftsmanship and skills recognized worldwide.
Understanding its inherent strengths, the industry perceives setbacks as temporary hurdles, consistently striving for improvement by integrating the latest technologies. Today, it stands capable of meeting the diverse demands of global markets.
My message to the GJ industry is simple: Let us continue to harness our collective strengths, seize emerging opportunities, and embrace change with enthusiasm. Together, we can navigate through any adversity, upholding our legacy of craftsmanship and integrity, and propel the industry towards unparalleled success.
JB Insights
Gold Loans Fuel MSME Expansion
Industry Seminar Focuses On E-Commerce Growth, Logistics Solutions and Global Shipping Opportunities For The Gem and Jewellery Sector
Across India, gold loans are rapidly shifting from purely personal-finance products into a go-to source of working capital and business-expansion funding for MSMEs, with non-bank lenders such as Muthoot Finance playing a central role in this transition. Record-high gold prices and easier documentation, combined with short-term tenures and relatively quick disbursal, are making gold-loan collateral attractive for small manufacturers, traders, and services-sector entrepreneurs who struggle to access traditional bank credit.
Gold loans have become a key contributor to India’s consumption-loan growth, with originations surging amid slowing personal-loan and credit-card growth and elevated gold prices improving collateral coverage.
Rating agencies and brokers note that high gold prices not only allow larger loans against the same jewellery but also help maintain asset quality, as borrowers are more incentivised to repay rather than forfeit precious metal.
Why MSMEs are turning to gold loans
- Many MSME borrowers use family-held gold as collateral to finance working-capital gaps, inventory purchases, machinery upgrades, or local-market expansion, especially where cash-flow cycles are irregular or credit history is thin.
- Gold loans typically offer lower interest and faster processing than unsecured personal loans or credit cards, and the presence of a tangible asset (gold) makes lenders more comfortable with shorter-tenor, higher-ticket loans.
Role of organised lenders like Muthoot Finance
- Muthoot Finance and other large NBFCs explicitly position gold loans as flexible, short-term credit for “business-related” needs, including trade, small-scale manufacturing, and micro-retail, and have reported that a significant share of new disbursements go to self-employed professionals and small business-owners.
- Digital-first interfaces, branch-network expansion into semi-urban and Tier-2/3 towns, and features such as missed-call status checks and mobile-based payment reminders help MSME-type borrowers manage repayments without frequent visits to branches.
Regulatory and risk-management angle
- Regulators and rating agencies note that channeling gold-loan funds toward productive MSME activity can improve asset quality, as business cash flows often support repayment better than purely consumption-driven loans.
- At the same time, tighter supervision on re-pledging and stricter documentation—from April 2026 onward—are pushing MSME borrowers toward organised players, reducing reliance on informal pawn-shop-style lending and improving transparency in SME-oriented gold-loan portfolios.
Market-level impact
- With the organised gold-loan market expected to breach ₹15 lakh crore by March 2026, MSME-oriented lending is emerging as one of the key growth segments, particularly for NBFCs that combine branch-level trust with digital ease.
- This trend is encouraging gold-loan houses to design quasi-MSME packages—such as higher ticket-sizes, flexible moratoriums around festival seasons, and payment-tracking tools—while keeping the underlying product clearly tagged as a secured gold-loan.
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