The Indian Commerce Ministry is considering the creation of a dedicated task force to address the challenges facing the gem and jewellery industry. This proposal follows a meeting between Commerce Secretary Sunil Barthwal and industry leaders, where the need for policy support, improved liquidity, and a favourable business environment was emphasized to counteract global uncertainties.

The initiative mirrors a similar task force formed for the textile sector, aimed at addressing weak demand in key markets like the US, China, and West Asia, exacerbated by geopolitical tensions and economic challenges. Sanctions on Russia, which have disrupted the supply of rough diamonds, were also cited as a significant issue affecting India's exports of cut and polished diamonds.

Barthwal stressed that the government’s intervention is crucial during these difficult times, stating that a task force could help identify and resolve the industry's pressing concerns. Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), welcomed the proposal, noting that a collaborative platform would create a sustainable future for the sector.

Shah also recommended policy measures such as extending the credit period for rough diamond imports and cut-and-polished diamond exports, broadening the Interest Equalisation Scheme, and enhancing pre-shipment and post-shipment credit terms. The GJEPC further requested government support for the India Jewellery Park Mumbai, which aims to bolster the sector through various infrastructure and export initiatives.