New Delhi, July 25 (KNN) With the market flooded with imports from  China, even the traditional sectors like the domestic artificial gemstone and jewellery industry comprising of mostly the Micro, Small and Medium Enterprises (MSMEs) in Tamil Nadu are on the verge of closure, fear industry association TANTSIA.

Talking to KNN, C.K Mohan, Secretary General of Tamil Nadu Small and Tiny Industries Association (TANSTIA) explained the situation.

Mohan informed that the Tiruchirappalli region of the state at once was a hub known for its craftwork in artificial gems and jewellery.

It produced quality products that provided employment to lakhs of workers. But with the rising imports from China, the industry was severely affected.

“The state of Tamil Nadu at once was a big market for the artificial jewellery, it continues to remain an attractive market but it’s now the Chinese products that are on sale”.

Listing the problems that surround the industry, Mohan said that while Chinese imports is one factor affecting the industry of the region, lack of formal credit is another. Due to the lack of credit to the MSMEs, the units are not able to keep up with the production whereas the imports provide a vast variety of products, therefore the domestic MSMEs suffer.

“Also since the units are suffering for survival, the market further exploits them by not making payments in time, which is pushing the industry to the edge,” he added.

To keep the industry alive, few manufacturers are beginning to form small clusters and Common Facility Centres with the support of the MSME export council;. Though that provides a lifeline for some of the units, the larger industry continues to face threat of extinction, asserted Mohan. (KNN/ DA)