 "Assocham demands industry status for gems & jewellery sector")
"This will have a multiplier effect and result in increasing demand for gems and jewellery which will have a vital and positive impact on output, employment, value addition and indirect tax collections," noted the study titled 'Gems & jewellery industry: Contributing to Make in India,' conducted by The Associated Chambers of Commerce and Industry of India (Assocham) jointly with Thought Arbitrage Research Institute (TARI).
Overall gems and jewellery exports from India during the first six months of fiscal 2015-16 stood at $19.22 billion and registered a decline of 5.59% over the $20.3 billion exported in the same period last year.
"Gems and jewellery sector might register a decline of about 15% in wake of severe economic downturn in major export markets of China and the Eurozone," said D S Rawat, national secretary general of Assocham. He added that granting industry status could give filip to investments and, in turn, bring down operational costs in the sector.
Modernisation of labour laws, requirement of more export-oriented economic zones, establishment of a gold board, ensuring access to better financing, relaxation of certain taxation laws, segregation of investment and consumption demand, setting up a gold tourism circuit are certain key areas focus on which can help in reviving the G&J sector in India, suggested the Assocham-TARI study.
The study also pointed out that young workers are shunning the gems and jewellery sector and moving to other lucrative industries in the manufacturing sector.
"The average salary in Indian gems and jewellery sector at Rs 2.52 lakh per annum is perhaps the lowest amid manufacturing industries like pharmaceuticals (Rs 5.09 lakh), capital goods (Rs 4.94 lakh), electronics (Rs 4.43 lakh), chemical (Rs 3.97 lakh), automotive (Rs 3.77 lakh), construction material (Rs 2.88 lakh), metal and metal products (Rs 2.54 lakh)," highlighted the study.