Mumbai: The Gems and Jewellery Export Promotion Council (GJEPC) has submitted a Pre-Budget memorandum for consideration to Union Finance Minister P Chidambaram.

Highlights of the memorandum include:

• Reduce import duty on cut and polished coloured gemstones from 5 per cent to nil. Zero import duty will help in easy availability of coloured gemstones of various sizes and qualities in India, furthering assisting in the growth and diversification of studded jewellery exports, and transforming Indian into Global Jewellery Trading Hub.
  
• Plain Gold Jewellery (below 18 carat) from 10 per cent to 5 per cent, to attract foreign direct investment (FDI) from the migrating Italian jewellery industry, which is trying to relocate on account of high labour costs. The association estimates that at least 20-30 per cent of the Italian jewellery industry has either closed operations, or has relocated to other countries such as Turkey, which provide cheap labour and market access to EU. The Italian Jewellery Industry is interested in setting up manufacturing plants in India, once market access in terms of lower duty is provided. Reduction of import duty, India will be able to attract FDI from Italy for manufacturing jewellery (below 18 carat).
  
• Reduction of duties on machineries from 10 per cent to 5 per cent, to facilitate quality improvement for export production