The government should extend incentives like interest subsidy to promote gems and jewellery exports that have been marred by the global slowdown, an industry body on Wednesday said.

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The slowdown has put at risk livelihood of over 30 lakh people employed by the sector across India, Assocham said in a statement.

"The exports are likely to remain under pressure this year as well, even though there are indications of improvement in business sentiment in the US which takes nearly half of country's diamond jewellery production," it said.

It also said while import of rough diamonds and semi-precious stones have fallen by over 11% in 2015-16, the net diamond exports and semi-precious stones have declined by about 43% year-on-year to $2.4 billion in 2015-16.

Besides, exports of jewellery have fallen by about 17% to $11 billion in the last fiscal. The chamber has also appealed to the government for granting industry status to the gems and jewellery sector to give a fillip to investments.

"Requirement of more export-oriented economic zones, establishment of a gold board, ensuring access to better financing, relaxation of certain taxation laws, setting up a gold tourism circuit are certain key areas to focus on which can help in reviving the sector," it added.