India's gem and jewellery industry has been known for its steady growth over a period of time. As per a report brought out in June 2008 by the Gems & Jewellery Export Promotion Council (GJEPC) set up by the ministry of commerce and industry, the industry exports grew from US$ 29.35 million in 1966-67 to US$ 20.9 billion in FY 2007-08. The industry, a leading foreign exchange earner and one of the fastest-growing sectors, accounted for 13.41 per cent of India's total merchandise exports during FY 2007-08. (However, with global financial meltdown wrecking havoc, the industry has taken a hit. With no takers in significant export markets such as the US and Europe, the industry is facing a loss. There has been loss of jobs as well. According to media reports, around one lakh industry workers have lost their jobs. Moreover, what will be the total impact on the industry due to the current recession, it's difficult to foretell at this point.) According to GJEPC, US, Hong Kong, UAE, Belgium, form major export destinations, apart from Singapore, Israel, Thailand, Japan, UK, Switzerland and Germany. US accounts for 26 per cent of the gem and jewellery export destination.
India is a traditional hub of gems and jewellery. From exotic jewels, which adorned our rajas and maharajas, to the contemporary accessories, India is a major source of a spectrum of coloured gemstones, moving from traditional focus on emeralds to a stunning array of choice in present times.
The industry is huge and so is the requirement of manpower in the industry. Moreover, with Indian brands introducing international design, how well our industry is integrated with the global standards to meet the challenges in terms of skilled manpower is a vital question. Also, knowledge in the jewellery sector is closely guarded; father would pass on the skill to his son but will not show keenness to teach it to an outsider.
"Most of the artisans, coming from places like Bengal, Bihar, etc, are not skilled. We make them work with master artisans, though a lot of them are not too eager to impart training," says Devendra Dave, whose seven generations have been into this business. His family owns three shops in Chandni Chowk in Old Delhi. Artisans from West Bengal, Bihar, and Rajasthan move to places like Delhi, where they can make a living, though most of them are unskilled and have to learn from scratch. A number of them find place in the market as they already have a prior exposure to the skill which they owe to their ancestors. "They come to us with no formal training. For most of them it's an ancestral job," says Deepak Kumar Agrawal, who owns a shop in Old Delhi. But that does not mean that the industry can do without trained manpower. "The industry is looking for trained people. In 1966, jewellery export was just six million dollars and now it is 21 billion. We need trained manpower," says VK Jain, faculty, National Institute of Jewellery Design and Technology (NIJDT), New Delhi.
NIJDT offers training to students in various courses, taking care of the needs of the industry. It's a Delhi State Industrial & Infrastructure Development Corporation Limited (DSIIDC) undertaking, which took the initiative to promote this sector in the national capital. The institute has students not only from the city but nearby places as well. "We get people from places like Meerut too, who are not qualified but are good at their work. Even 'microscope' is a very difficult word for them. We have to speak to them in Hindi. Though we don't have any specific training for communication but by the end of the course they learn a lot in that area also," says Surinder Kapur, director, NIJDT.
Gemstones and more
India offers a variety of jewellery — plain, diamond studded and coloured stone studded jewellery. For any stone to be a gem, it must be beautiful and durable ie it should have a capacity for wear and tear and to resist any sort of aberration, breakage etc. Such a stone which is beautiful, rare and has durability is called a gem and the science which deals with this is called gemology. For example diamond is a gem.
Those working with gems need to have a keen eye, be it in traditional work or the latest CAD applications. When a person studies gemology, he must be accurate in assessing what stone it is. He should also be sufficiently trained to identify which particular stone it is. For example in diamond grading, the normally-used colours are J,K and L in a range that varies from D to Z. There is also a Z+ quality. The best one is D. It has no colour. It is crystal clear like mineral water. A gemologist should be trained well to be able to give right grading apart from proper equipment.
"India is one of the major hubs for gems and jewellery. The gems and jewellery sector always had a scarcity of skilled candidates. So, NIDJT, with the help of some experts in this field, has tailored certain courses which after the completion of the course, especially in gems and jewellery, will allow students to handle either their own factory or other set ups. So our aim is to take care of those skilled persons. The most important thing that they lack is evaluation of diamonds. Out here, we teach students all these so that he/she will be able to tell what is the exact price of a piece of diamond," says Amarnath, a gemologist and a faculty at NIJDT.
An experienced gemologist can earn anywhere between Rs 20,000-80,000.
Diamond manufacturing sector is a significant part of the Indian gems and jewellery industry. India exported cut and polished diamonds worth US$ 14.2 billions in 2007-08, as per GJEPC. According to the apex body, 11 out of 12 diamond sets in jewellery worldwide are processed in India. Also, the Indian coloured gemstone industry has enormously expanded over the years from being a traditional hub to exporting in the international market. Exports of the coloured gemstones in 2007-08 stood at US$ 276 million, as per GJEPC. |
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The students come from diverse backgrounds. While some have family business that deals with gems and jewellery, others join due to sheer interest. "I have come from Agra, only to do this course. I am an ayurveda graduate and was into medical astrology. I was curious to know about gems and so I joined this institute," says Dr Ashok Agrawal, doing a six month course in gemology.
"I am in the garment trade. We do a lot of jewellery also, especially semi-precious. But now I look forward to including precious jewellery as well. I came to know about this course and inquired from a number of people. It's a government institute and the faculty is up to the mark. The student counselling is good and the teachers here are quite encouraging," says Anjali Gujral, another student doing a six month course in gemology.
"I don't have a family background in this but I want to make a career in this field. I came to know about this course through my friends," says Ashish Sharma, doing a six month course in
gemology.
A formal training allows the students to learn the basics of the industry. From designing to manufacturing, there is a lot to learn. "We invite people who are in the trade. They know the market. We have people who are running their own showrooms like those from Tanishq. We have people from Indian handicrafts as well coming to teach our students," says Kapur.
The faculty members come with experience that is industry related. "I had the opportunity of working with Canadians, those who were mining gold. We started the scheme of certifying gold jewellery. We started hallmarking. Stones used to be baffling, so we wanted to start some sort of lab testing ... I have taught as a faculty in GJEPC for four years. In 2005 when NIJDT was set up, I was appointed as an advisor; we started from scratch," says VK Jain, faculty, National Institute of Jewellery Design and Technology.
Such training allows the students to understand the skill and market better. The students are made to visit a number of exhibitions and also participate in events like trade fairs where they get exposed to the real world. "The designs made by our students are showcased in Trade Fair that happens every year in New Delhi. A lot of time their designs find buyers as well," says Chaishta Prakash, faculty, basic and advanced design course at NIJDT.
The idea is to enable the students to use their skills in the best possible manner and develop an eye for the authentic. "If somebody is not able to distinguish between a diamond and a stone, what is the use of a course," says Kapur.
While on one hand, institutes like NIJDT are working towards providing trained manpower to the industry, how receptive is the industry is the point. Big brands might still be open to the idea of a formal training, but a number of independent jewellers who have been in the business for decades, think otherwise. "The artisans get trained in the process of working, what is the need for formal training or for a certificate?" asks Sajal Das, running a business in old Delhi. His artisans come from Bengal and toil hard in a single room sharing accommodation, some of them living with five other people in a single room, cooking, sleeping and working, from the same place. "Certificate is of no use, if they can't use their skill," says Ramchand, another jeweller. The industry provides employment to more than a million people, though recession again has forced job losses with over 3-4 percent of the people already losing their work as per sources. The salaries are paid at times on daily basis, which can begin from Rs 400-500, depending on the man hours. On a monthly
basis, they begin from Rs 3,000-4,000 for unskilled labour. Experience in this industry, like in others, brings in more money. "A three-year experience can fetch up to Rs 10,000 a month," says Dave. Those having a formal training, start anywhere between Rs 10,000-20,000.
India's gems and jewellery industry is at par with the world standards in terms of quality and design. The industry has always received boost from the government from time to time. As per GJEPC, the following are some of the major highlights of the foreign trade policy 2004-09 as updated in April 2008:
- The limit value of jewellery parcels for export through foreign post office (including via speed post) has been raised from US$ 50,000 to US$ 75,000.
- The export of coloured gemstones on consignment basis has now been allowed
- Surat (Surat Hira Bourse) has been included as the port of export for gold/silveri platinum jewellery
- The time period for re-import of branded jewellery remaining unsold has been extended from 180 days to 365 days
- The replenishment authorisation for duty-free import of consumables, machinery, tools and equipment has been extended to cut and polished diamonds.
- The income tax exemption available to 100% EOUs under Section l0B of Income Tax Act, which was set to expire on 31.3.2009 has now been extended to 31.3.2010
- To re-emphasise the importance of modernisation in export unit, the customs duty payable under EPCG has been reduced from 5% to 3%.
- Introduction of benign assessment procedure for assessees engaged in diamond manufacturing and trading who declare profits from such activities at six percent or more of the turnover
- Import of cut and polished diamonds, import of cut and polished coloured gemstones, rough diamonds and rough coloured gemstones, and rough synthetic stones allowed at zero percent duty
- Duty on rough Cubic Zirconia has been reduced from five per cent to nil, cut and polished Cubic Zirconia has been reduced from 10 per cent to five per cent and unworked corals being reduced from 10 per cent to zero percent
Though efforts are being made to bring up the skills level in the country, a lot remains to be done. It is perhaps just a grain of sand in the pool of unskilled manpower.
DK Misra, executive director, DSIIDC, accepts that while NIJDT might have taken the first step, it will take some time for the results to be seen. "This is a new effort of the government for the industry which is to provide the necessary training and necessary background to the students so that when they join the industry, the industry does better. This industry has potential for exports which we are already doing. Since this is a new initiative it will take some time to make an impact. It has been set up to support the industry, to help the industry grow. Everything which supports the industry has an impact on the economy," he says.
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