Job work policy will boost diamond processing MSMEs in India: GJEPC

Surat, Jan 24 (KNN) In order to attract big retail giants from across the globe for getting their diamonds processed in India, Gems and Jewellery Export Promotion Council (GJEPC) has requested the Central Government to frame a job work policy for diamond industry.

Despite the potential to become a big diamond processing hub, the MSMEs in Surat, which is a job work segment, is not getting much work from giant retailers. According to experts this is due to lack of job work policy in the country.

At the same time, China, Vietnam and Thailand have become hub for processing of jewellery, diamond and precious and semi-precious stones due to implementation of a job work policy there.

The job work model will not only get business for the diamond industry including MSMEs in the state but would also help the exports boost.

The job work policy will help diamond artisans and manufacturing units in Surat and Mumbai to earn big money and enable big retailers to make direct contracts to get their goods processed.

The big retailers likeTiffany and Signet are not able to get their diamonds processed in India.

According to a report, in order to reduce the costs, such retailers have designed a model through which they make direct contracts with mining companies and get goods processed from China, Vietnam, Thailand etc.

On the other hand, with the advent of synthetics and conflict diamonds the source protocol for diamonds becoming very important for the US and other western markets, Financial Action Task Force (FATF) regulations etc.,

The job work model will gain importance as more and more US retailers would like to certify the origin of the diamonds set in jewellery when selling it to consumers.

Surat is the world's largest diamond cutting and manufacturing centre where 14 out of 15 diamonds mined are processed and around 90 per cent of polished diamonds are processed in Surat, while the rest are processed in Navsari, Ahmedabad, Amreli, Bhavnagar etc.The annual diamond processing is pegged at more than Rs1 lakh crore.

GJEPC regional chairman Dinesh Navadiya said, "We have suggested to the central government to introduce a job work policy for the larger benefit of the Indian diamond industry. India, especially Gujarat, is the job work centre for diamonds and jewellery.”

He further added “The job work policy will go a long way in reinforcing the strength and ability of artisans and manufacturers and will also provide an opportunity to earn dollar revenue for the government."

Navadiya said “mining companies like De Beers have opened jewellery brands and stores titled 'Forevermark'. Rio Tinto and Alrosa have also initiated similar kind of programs in India.”

The introduction of job work policy will create humongous employment opportunities and value addition in India without involvement of precious foreign exchange as miners and retailers can directly make contracts in dollars.(KNN/YV)