GJEPC vice-president Colin Shah on Friday said past few years have not gone well for gems and jewellery industry, therefore, diamond polish import duty should be reduced from 7.5 percent to 2.5 percent in Budget 2020.

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He also said a comprehensive long-term gold policy for exports and domestic trade is need of the hour.

There were a lot of diamonds would to come back for re-cutting, there is a lot of jewellery which generally is recycled globally, consumers come back and want to exchange their old jewellery for new ones or just return old for credit, Shah told CNBC-TV18.

He said if the government reduces diamond polish import duty from current 7.5 percent to 2.5 percent, it would create 10,000 jobs for just re-cutting of these old stones into fresh new diamonds.

He added manufacturing without trading is not really viable. "So. we are seeing a loss is jobs even on that front where manufactures are moving their factories to either Africa or China."

"Gold duty reduction and a comprehensive gold policy for exports and domestic trade which is long term in nature and where there is no tweaks. Because it is very difficult for businesses to change their business models every year and that is what even foreigners are asking for and even the Indian manufacturers are asking for."