New Delhi, Oct 12 (KNN) With the festive season round the corner, the gems and jewellery sector comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) are not able to fetch the business it used to fetch in the previous years, All India Gems & Jewellery Trade Federation (GJF) informed.
Talking to KNN, Nitin Khandelwal, President of All India Gems & Jewellery Trade Federation (GJF) explained the situation.
Khandelwal said that this year’s festive season is not very cheerful for majority of the sectors, including the gems and jewellery sector. With the sales dipping by over 50 per cent, the MSME units involved in the manufacturing chain as well as the traders are all badly affected.
Khandelwal said that the slow trends in terms of sales started right from the early demonetization era when the market registered low demand for the luxury items. With the cash crunch prevailing, the primary focus was to get the products of basic consumption. This trend continued since November, which is yet to pick up.
Goods and Services tax (GST)
While the sector is positive about the newly implemented tax reform, the early days of GST and transition into the new taxation did register difficulties, both among the manufacturers as well as the sellers and buyers.
Khandelwal informed that by now the gems and jewellery industry have successfully started under the One Nation One Tax regime of the government. With majority of the concerns and issues resolved.
Prevention of Money Laundering Act (PMLA)
Aiming towards providing some relief to the jewellery stocks, the government announced the rollback of the order to bring the sector under the purview of the Prevention of Money Laundering Act (PMLA).
Under the act any transaction above Rs 50,000 was supposed to furnish Aadhar Card as well as one more identity, but the government decided to roll back the order, which the industry feel is a food move as to avoid panic and confusion among buyers.
Khandelwal informed that the Diwali festive season is also hit by the shifting demand in the market. The buyers are being offered other options to consider as gifts in which they can make EMI payments such as electronic gadgets and appliances, which is another reason for the dip in demand.
While Diwali remained a low season this year, the industry is hopeful that the wedding season that follows might restore the sales figures for the sector, Khandelwal added. (KNN/ DA)