Subsidy scheme in the works for tech upgrade of gems & jewellery industry

retail
By retail May 21, 2020 12:02 Updated

Subsidy scheme in the works for tech upgrade of gems & jewellery industry

Under the scheme, the government would provide subsidy for any technological upgrade of the sector to help it foray into high-value added products besides reducing cost for its staple cutting and polishing.

India has begun work on a capital investment subsidy scheme for the gems and jewellery industry to spark a massive technological upgrade.

Similar funds are available to other export and employment oriented sectors of textiles and leather. The scheme, being discussed by the government, would promote investment in gems and jewellery machinery manufacturing.

Under the scheme, the government would provide subsidy for any technological upgrade of the sector to help it foray into high-value added products besides reducing cost for its staple cutting and polishing.

A Technology Upgradation Scheme (TUF) for the gems and jewellery sector is in the works as the government seeks to reduce the capital cost for the industry.

“There is a suggestion and discussions are at a very early stage. The idea is that technology should improve for the entire industry,” said an official.

The scheme will facilitate increase in productivity, cost and waste reduction, improved quality, spur innovations and improvements, and improve the competitiveness of India’s mostly unorganised gems and jewellery industry.

The subsidy could help Indian companies win back business lost to Hong Kong and China. India also faces tough competition from Thailand and Vietnam.

Gem and Jewellery industry is one of the largest industrial sectors in India, generating employment to the tune of about 4 million. India’s gems and jewellery exports shrank 98.74% on year in April to $36.06 million.

“Technology upgradation is the need of the hour and automation is a positive fallout of Covid-19,” said Ajay Sahai, director general, Federation of Indian Export Organisations.

Moreover, with social distancing norms being enforced, automation will bring in consistency and reduced rejection rates.

 

Courtesy: ET Retail

retail
By retail May 21, 2020 12:02 Updated
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