The withdrawal of duty benefits by the US under the Generalized System of Preferences (GSP) is yet another blow for India’s gems and jewellery sector. The decision, which came into effect from 5 June, is however expected to have a limited impact on India’s overall export trade, said Crisil Research Ltd. Among the sectors that will be impacted, gems and jewellery will be the worst hit. “The withdrawal of GSP will affect exporters of gems and jewellery the most because around 15% of such exports availed of its benefits in calendar 2018. Now there will be an additional duty of ~7% on exports of precious metalbased and imitation jewellery. That will reduce competitiveness of domestic exporters and put pressure on margins," the rating agency has said in a report.
展开▼
