FEASIBILITY REPORT (EXPORT INCENTIVES)

 FEASIBILITY REPORT (EXPORT INCENTIVES) Assignment Sample

Executive Summary
The feasibility report has been done in the export incentives that an exporter doing business in the jewellery industry would earn from trading with other countries. The focus has been given on how the initiatives by the Government of India of the jewellery industry can improve the industry as a whole. Financial projection has also been made which shows the overall profit earned by the jewellery industry from the trade with the foreign countries. A project schedule and 5-year financial projections have been presented.

Table of content
Introduction	4
Description of products and services	4
Technology considerations	6
Technology considerations	7
Marketing strategy	8
Organization and staffing	9
Schedule	9
Financial projections	10
Conclusion and recommendation	12
References	13
Introduction

A feasibility report is a document that provides a solution to a business organization for developing its business by working on the problems that the organizations have been facing. This report will be based on the export incentives that an exporter of gold and diamond jewellery doing business in India can receive. Export incentive is the additional income that a country can earn after the export of the goods and services within the domestic country. In the study, the discussions will be done on the description of the products and services and the technological advancement will also be highlighted. Moreover, few recommendations will also be discussed in the study so that the business through export of goods and services could be improved and can maximise the earning by the country.

Description of products and services

According to the case study, around 85% of gold and diamond jewellery that are produced in India is consumed in the domestic market and only 15% of the total production is exported in the global market. The main buyers of the gold and diamond jewellery are USA, Hong Kong, UAE, Singapore and Belgium. As per the case study, around 0.1million gold jewellery and 8,000 diamonds jewellery is produced by around 2 million workers working in the jewellery industry. However, the exporter of gold and diamond jewellery aims to avail the incentives from the export under the provisions of the Foreign Trade Policy (FTP). According to the case study, India has benefited from the foreign trade policy by increasing the cost of personal carriage from US$ 2 million to US$ 5 million. Additionally, 100% Foreign Direct Investment in the Jewellery Industry of India has been permitted so that India can become a diamond trading hub before the global market. As per the case study, the demand for gold in the global market has been increased from 338.70 tonnes in the period between January to June in 2018. On the other hand, the export of gems and jewellery has been raised to around US$ 13.18 billion in between the period of April to August in 2018.

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Figure 1: India’s market on Gems and Jewellery
The above figure shows the marketing of gems and jewellery in India. In the figure, the size of the Indian market shows that in the year 2017, the total earning had reached around US$ 75 billion. Moreover, the total contribution to the Gross Domestic Product (GDP) from the jewellery industry had been 7% (IBEF, 2019). On the other hand, this jewellery industry has also generated employment of around 4.64 million employees resulting in the improvement in the overall economy of the country. The key trends also show that between the financial year of 2005 to 2019, net exports have increased to nearly 4.99%, net imports have risen to 5.93% . Additionally, export of cut and polished diamonds has also been increased to around 5.56% in between these financial years.

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Figure 2: Sector-wise marketing of gems and jewellery in India
The above figure shows the sector-wise distribution gems and jewellery in India. It shows that in the financial year 2019, the contributions of the cut and polished diamonds has been around 76.9% which has been the maximum contribution in the sector (IBEF, 2019). On the contrary, the lowest contribution has been generated from the rough diamond. Moreover, the figure also shows different government initiatives like Gold monetisation scheme, BIS Hallmark Scheme and Sovereign Gold Bond Scheme. The main objective behind this initiative is to ease the common people by providing loans on the basis of the gold mortgages. However, BIS hallmark Scheme provides a warranty on the gold value.

Technology considerations

According to the case study, the domestic production of gold and diamond jewellery in India depends on the raw materials that are imported from other countries. In India, Mumbai has been considered as the special economic zone in India that promoted around 40% of the exports from India in the year 1990. The reason for preferring Mumbai as the special economic z