In this process, India has assumed market leadership in terms of both volume and value as an exporter of cut and polished diamonds, overtaking Israel.

The segment of cut and polished diamonds which accounts for the bulk of gem and jewellery exports crossed the figure of $5 billion ($5009.02 million) during 1998-99, achieving a 10.30 per cent growth in dollar terms over exports worth $4.5 billion ($4521.26 million) during 1997-98.

Total exports of gem and jewellery thus achieved an impressive growth of 11.21 per cent in dollar terms having increased from $5.5 billion to $6.1 billion in the above period. This figure also includes gold jewellery exports valued at $863.75 million in 1998-99.

A series of policy initiatives have helped create a conducive environment for gem and jewellery exportscontributing to the significant export growth in 1998-99. For instance, under the revised exim policy, export oriented units/export processing zones units have been permitted to import plain gold, platinum and silver jewellery for repairs/remake and export subject to a minimum net foreign exchange performance of 75 per cent. In such cases of export, wastage of 2 per cent has been permitted.

Exports of such jewellery have to be effected within 120 days of import.

Further, personal carriage of gems and jewellery parcels by foreign buyers from all EOU/EPZ units and also from the domestic tariff area units located at Delhi, Mumbai, Calcutta and Chennai has been permitted. The procedure will be the same as for despatch of goods by air-freight except that the parcels after customs examination and sealing will be handed to the foreign buyer at the time of his leaving the country. Authorised courier companies are also permitted to operate on these lines. Replenishment licences issued under the Handbook ofProcedures have been made valid for duty-free import of consumables up to one per cent of the FOB value of exports of the preceding year as notified by Customs. Exports by courier have been allowed through customs houses at Mumbai, Calcuttta, Chennai, Delhi, Jaipur, Bangalore, Ahmedabad and Hyderabad up to FOB value of Rs.20 lakh per consignment. Diamond imprest licences for import of cut and polished diamonds for mixing with cut and polished diamonds or for export as it is are allowed to be issued for export of cut and polished diamonds. An exporter of cut and polished diamonds having the status of an export/trading/star trading/super start trading house can be issued a diamond imprest licence for import of cut and polished diamonds up to 5 per cent of the export performance of the preceding year of cut and polished diamonds.

Such an entitlement has to be exhausted within the same year of issue and is not allowed to be carried forward to the next year and holder of such licence for import of cut andpolished diamonds has to achieve a minimum value addition of 10 per cent.