(MENAFN- KNN India) After a bumpy ride during the festive season, Gems and jewellery industry coming back to track: GJF
New Delhi, Nov 23 (KNN) The jewellery and gems industry comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs) has rekindled after experiencing sluggish growth caused by demonetization and early implementation of Goods and Services Tax (GST), All India Gems and Jewellery Trade Federation informed.
The reduction in demand due to demonetization and slowed economy affected the gem and jewellery manufacturers and consumers badly.
Talking to KNN, Ashok Minawala, Spokesperson, All India Gems and Jewellery Trade Federation informed that the demonetization distorted the growth cycle and value chain of the gems and jewellery industry, the growth rate dropped to more than 50 percent because of demonetization.
The GST rate of 3 percent on gold jewellery did not cause much problems to the industry.
He added that the industry had started improving after Diwali but still growth is still down by 25 percent .
According to the spokesperson ,the improved consumer sentiments coupled with recovery in economy and withdrawal of PMLA (Prevention of money laundering Act) notification by the GST council has led to the revival of gems and jewellery industry.
Government announced earlier that jewellery transactions above Rs 50,000 will require PAN or Aadhaar card details of consumers and entities dealing in gems or jewellery having turnover of Rs 2 crore or more had to submit their transactional records to the record but in October GST council revoked the rule.
The spokesperson said that its 2000 year old industry and government's approach should be positive towards this industry. (KNN/AG)
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