New Delhi: Budget 2004 proposes to allow duty free import of rough coloured precious gemstones. And for the jewellers in Jaipur - the largest centre of coloured gemstones in the country - it's a step in the right direction at the right time.

Big boost
Lifting the 5 per cent duty on the import of the stones, comes as a big boost to the industry.

"The raw material will become cheaper and will come to us very smoothly. Earlier, we had to pay duty or attach an REP license, which took time and paperwork," said Ajay Kala, honorary secretary, Jaipur Chamber of Commerce and Industry.

Imported from Africa and South America, the precious stones are cut and polished by Jaipur's master craftsmen, who have been in the trade for generations.

New initiatives
Jaipur alone exports about Rs 1,100-crore worth of coloured gemstones.

But now more and more jewellers are also trying their hand at exporting finished jewellery products. Though, they say a lot more still needs to be done to make the industry internationally competitive.

India exports about Rs 43,000-crore worth of gems and jewellery annually. And the duty exemption is a big boost for an industry that is the second highest foreign exchange earner for the country.