Exporters Want Opening of Gems, Jewellery Trade with Pak.

With prospects of Pakistan granting MFN status to India getting brighter, the gems and jewellery exporters have started pitching for opening of trade in the sector between the two neighbours.

The exporters, who see a huge opportunity in Pakistan, have urged the Commerce Ministry to discuss the issue of allowing trade with the Pakistani government.

At present, Pakistan follows a 'positive list' regime and permits import of only 1,963 items from India which does not include gems and jewellery.

"We have requested the Commerce Minister to talk to the Pakistan government in this regard. Pakistan has great potential. The two countries can directly trade rather than routing it through Middle-East and Dubai," Gems and Jewellery Export Promotion Council (GJEPC) Chairman Rajiv Jain said.

Jain, who was a also part of the business delegation headed by Commerce Minister Anand Sharma to Pakistan last week, said that several exporters participated in 'India Show' at Lahore and received good response from Pakistani buyers.

"Our exporters got lots of enquries. Huge demand is there," he added. In the 'India Show', around 18 participants exhibited their gold items and jewellery.

During April-January 2011-12, gems and jewellery exports increased by 33 per cent to $37 billion over the same period last year.

In 2010-11, the bilateral trade stood at $2.7 billion, with the trade balance heavily in favour of India, while the indirect commerce through Gulf countries is manifold.

Pakistan is expected to grant the Most-Favoured-Nation (MFN) status to India by year-end while India has accorded Pakistan MFN status under World Trade Organization rules since 1996.

Source : smartinvestor.in