‘Gems and jewellery sector needs industry status to boost exports’
The government should grant industry status to gems and jewellery (G&J) sector and adopt a multi-pronged strategy to arrest the continuous fall in exports, an industry body has said. “This will have a multiplier effect and result in increasing G&J demand which will have a vital and positive impact on output, employment, value addition and indirect tax collections,” said the joint study titled ‘G&J industry: Contributing to Make in India,’ by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Thought Arbitrage Research Institute (TARI). Modernisation of labour laws, setting up of more export-oriented economic zones and a gold board, ensuring better financing, easing tax norms and setting up a gold tourism circuit are certain key areas of focus which can help Indian G&J sector, suggested the study. “Granting industry status can give a fillip to investments and bring down costs of operation in the sector, besides also building trust in Indian brands in the global markets,” said D S Rawat, General Secretary, ASSOCHAM. The study also said, “Growth in G&J sector can be a single panacea to all problems of Indian economy owing to strong backward linkages of the sector with ancillary industries.” It said that young workers are moving to other lucrative industries in the manufacturing sector due to inadequate working conditions and limited compliance with health and safety standards. Lack of awareness among unorganised players and small-scale enterprises about the usage of cutting edge technology and quality material in the manufacturing processes is also a major factor behind the crippled growth of the sector, it said. Stressing on the need of skilled workforce, the ASSOCHAM-TARI study suggested substitute manual methods of cutting, polishing, manufacturing capabilities with high-end machines and software by imparting practical training to the youth in use of modern techniques prevalent globally. According to the study, India’s gems and jewellery sector is likely to register a 15% decline in wake of severe economic downturn in major export markets like China and the Euro zone. Gems and jewellery exports from India stood at $19.22 billion during the first six months of the current fiscal, registering a 5.59% decline year-on-year from $20.3 billion of exports recorded during the same period last year.
November 04, 2015 | 4:31pm IST.
to success.