Anand Sharma voices for cheaper credit for industry

Anand Sharma addressing the press after inaugurating the 29th India International Jewellery Show 2012, in Mumbai on August 23, 2012.

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SME Times News Bureau | 24 Aug, 2012
Amid slowdown in the economy, the issue of allowing the industry access to cheap credit at comparable rates prevalent in competitive international markets has gained importance, said Union Minister for Commerce, Industry & Textiles Anand Sharma, on Thursday.

"Access to cheap credit at interest rates comparable to those prevalent in competitive international markets has also engaged my attention, especially in the wake a slowdown in the economy," Sharma said at the inauguration of the India International Jewellery Show organised by the Gems & Jewellery Exports Promotion Council in Mumbai.

In his speech, the minister indicated that the government is considering amendments in the SEZ rules, to ensure that the Special Economic Zones remain attractive destinations for investments.

"The government is working closely with the industry leaders to formulate slew of measures to offer a fillip to SEZ exports," he said adding that he had already written to the Finance Minister for reconsideration on withdrawal of Minimum Alternate Tax and the Dividend Distribution Tax.

SEZs, which came with a bang in 2006, have seen gradual slow-down, even though more than a quarter of country's exports come from them. During fiscal 2011-12, exports from SEZs had increased by just 15 per cent to Rs 3,64,477.73 crore, the lowest growth in the last five years.

Sharma said the gems and jewellery sector assumed a significant role being the single largest merchandize item of export, earning valuable foreign exchange fetching approximately USD 42 billion.

He added the Government, recognising the inherent strengths of this sector in terms of its employability potential, has taken major initiatives to strengthen institutional linkages. "Enhancing the skill levels of the workers commensurate with the requirement of the industry, tops the agenda and two such centres are being set up at Domjur in West Bengal and Khambat in Gujarat," he said.

"The Government is also encouraging global partnerships and collaborative ventures for adopting a diversified approach in the jewellery sector," he said, citing example of a recent collaboration with the Antwerp World Diamond Centre as example.

The objective of the collaboration is to to strengthen skills in diamond and gem stones grading, certification, research and development, cutting and polishing and setting up state-of-the-art training centres in India, he stated.

The minister also informed that India is setting up a India-Africa Diamond Institute in Botswana, with the Government of India assistance of USD 2.7 million.“We are supportive of the African producers in their quest for beneficiation with their diamond resources, while simultaneously encouraging them to do direct business with India," he said.