SEZ Share To G&J Exports Down By 67 pc In A Decade
In the FY24, the total gem and jewellery exports from India amounted to approximately $32 billion. Of this, around $6.4 billion worth of gem and jewellery products were exported from SEZs, constituting roughly 19.8 per cent of the total gem and jewellery exports
Chennai: The share of SEZs in gems and jewellery exports has declined from 45 per cent in FY13 to 19 per cent in FY24 as the export revenues from the SEZs have fallen by 67 per cent during this period.
SEZ’s share in gross gem and jewellery exports was 19 per cent in FY24.
In the FY24, the total gem and jewellery exports from India amounted to approximately $32 billion. Of this, around $6.4 billion worth of gem and jewellery products were exported from SEZs, constituting roughly 19.8 per cent of the total gem and jewellery exports.
In FY13, SEZs had contributed $19.8 billion towards the gems and jewellery exports of $43 billion, accounting for 45.5 per cent share. The exports from SEZs have shrunk by 67 per cent during the period.
On the other hand, the contribution of the Domestic Tariff Area, which was 54.4 per cent in FY13, has gone up to 80.15 per cent in FY24. Despite the total gems and jewellery exports falling from $43 billion to $32 billion, DTA has registered a growth in exports from $23.7 billion in FY13 to $25.8 billion in FY24.
According to Prakash Pincha of GJEPC, ever since the government took away several tax concessions provided earlier, SEZs have ceased to be attractive for manufacturing companies. However, the SEZ facilities can still import raw materials duty-free with a guarantee of higher re-exports.
According to GJEPC data, there are around 300 manufacturing units or companies across 10 SEZs across the country.
“The facility has to be set up by the companies and there are several conditions to be adhered to. Further, the facility cannot be transferred to some other entity and payments have to be made even when the operations are halted. In many ways DTA units are more efficient,” said Pincha.
According to him, the SEZs should be de-notified so that the real estate and infrastructure can be used for manufacturing for the domestic market as well. The government has de-notified several SEZs catering to other products.
Similar to gems and jewellery SEZs which contributed a meagre 1.59 per cent to total merchandise exports in FY23, the contribution of SEZs in leather was 1.06 per cent, marine 1.81 per cent, ores and minerals 1.14 per cent, and sport goods 0.09 per cent.
