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LATEST NEWS UPDATES | Rajasthan's Unorganised Gems and Jewellery Industry May Want to Punish BJP -Shruti Jain

Rajasthan's Unorganised Gems and Jewellery Industry May Want to Punish BJP -Shruti Jain

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published Published on Dec 9, 2018   modified Modified on Dec 9, 2018
-TheWire.in

Several people who worked in the industry say demonetisation and the GST crippled their business.

Jaipur:
However much the Bhartiya Janta Party (BJP) may wish to overlook the impact of demonetisation and the Goods and Services Tax on the unorganised gems and jewellery sector in Rajasthan, the workers and households who bore the brunt of the twin economic policies are resolute in their decision to vote the BJP out of power.

The once prosperous gems and jewellery sector works on processing imported raw material (rough) to be exported as finished stones. Apart from the organised gemstone cutting and jewellery factories, there is a sizeable cottage industry where households are involved in contract manufacturing.

After gathering experience in the field, many workers had set up workshops in their villages that generated employment for others. Even the women at home learnt the work to support the family businesses. The middlemen used to get raw material manufactured from these unregistered workshops to sell to the industries, keeping enough margin in between.

However, the sudden cash crunch post demonetisation and subsequent implementation of the GST has broken this chain. With a 0.25% GST rate on cut and polished diamonds and precious stones, the tax structure has pushed out the small players that existed for decades.

Pappu had five years of experience in this field before he decided to set up his own workshop at his home in Sitawali dhani in Benad. He spent all his savings to purchase three Israeli machines for gemstone cutting. His wife, Hemlata, also learnt the work to support their small business.

The business went on well for decades until demonetisation, when they were left with no cash in hand to support their business. Today, he and his wife are planning to sell the machines to start a something new.

“About 15 workers used to work in our workshop until a year ago, but slowly and gradually, everything fell out of place and we were not in a condition to pay them anymore. So they left. There is no work order now, we are thinking of a new business, but we barely know anything outside of gemstone cutting.”

Some have moved out of this field but are still struggling to reach the income level they had two years ago.

Please click here to read more.

TheWire.in, 6 December, 2018, https://thewire.in/politics/rajasthans-unorganised-gems-and-jewellery-industry-may-want-to-punish-bjp


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