Sumesh Wadhera, the Chief Editor of The Art of Jewellery (AOJ), in an exclusive interview to SME Times, shed light on a number of serious issues that are hindering the progress of the Indian jewellery sector and put forward some key demands, including giving 'industry status' to the jewellery sector, focussing on improving the industry infrastructure and working condition of the artisans, and removing the recent restrictions on gold imports that has resulted in rampant smuggling of the yellow metal and also raised concern about pulling India's jewellery exports down 50 percent lower than the last year's figures.
He pointed out the fact that more than 10 million people are working in the jewellery industry and the above issues will have a negative impact on the employment generation prowess of the sector as well as the livelihood of millions of workers engaged.
He pointed out the fact that more than 10 million people are working in the jewellery industry and the above issues will have a negative impact on the employment generation prowess of the sector as well as the livelihood of millions of workers engaged.
Excerpts of the interview...Sir...Please tell something about your journey for The Art of Jewellery, India's No.1 jewellery magazine.
Sumesh Wadhera: The Art of Jewellery started its journey in 2002, to address a need for a quality magazine in the jewellery sector. It was the same time when the jewellery industry in India was going through a transformation. It was becoming a more organised segment and new corporate players entering the jewellery sector. Over the years we have worked very closely with the trade and evolved our role as a facilitator and catalyst added value through our various services and products. Today besides publishing "The Art of Jewellery" we have launched its Hindi edition..We have four trade shows in various parts of south India, a special cell for taking delegation to International trade shows. We also have a very strong online presence and were the 1st company to launch Daily e-news for the sector which has more than 50,000 subscribers today.
What kind of challenges you have faced during this success story? Please share few.
Sumesh Wadhera: Being a nascent and niche Industry the magazine had challenges in the initial years. Finding the right talent to reach out the main customer base to a large extent concentrated in Mumbai and in the Western Indian Region. Moreover to source out information for an industry, which is still not completely organised and is family run was a challenge. But gradually we got the right kind of human resources and practices to streamline the whole functional. In-spite of all challenges we never comprised on our quality and values.
How you see the gold jewellery market in India both domestic and exports?
Sumesh Wadhera: India is the world's largest consumer of Gold and Gold Jewellery. Last year we consumed close to 900 tones which is mostly met by imports, as we don't have any major gold mining in India. Gold is so integral to our culture and is considered a hedge against inflation. More than 10 million people are working in the jewellery industry in our country. But recent restrictions and government policies have made a negative impact on gold business. Even the gold jewellery exports have suffered and may end up 50 percent lower volume compared to last year.
Media reports that the gold jewellery exports fall 6.9 percent in October, moreover report adds that it's exports likely to dip by 50 percent in FY14. What is your said on this?
Sumesh Wadhera: As I mentioned due to restrictions and shortage of Gold metal in India, the exporters have suffered and have not been able to meet their export obligations. Moreover volatile gold prices have added to the negative sentiments.
Low availability of raw material is one reason. Second, in Dubai, gold is 21 percent cheaper than in India. There are reports that about half tonne of gold is coming into India from Dubai. In this case don't you think it will give rise to smuggling of gold in India?
Sumesh Wadhera: Already Gold smuggling has become rampant in some part of the country. Smugglers are using the Dubai, Colombo and Bangladesh Route. This will harm the jewellery industry in long run and anti-social and anti-national element will get involved in the business.
What will the best possible step that should be taken by the government to support gold jewellery exports? Your suggestion.
Sumesh Wadhera: First of all Government should make Gold Metal available to exporters on top priority, efforts should be made to enhance the value addition. Bodies like Gems and Jewellery Export Promotion Council (GJEPC) should create awareness and brand India Jewellery across the world. The significant feature of India jewellery being handmade and unique in craftsmanship should reach out to global consumers. Besides basic incentives and infrastructure from Government will go a long way to unlock the full potential of this sector .
You are associated with the leading industry chambers and association. How you analyze the role of micro, small and medium enterprises (MSMEs) in jewellery sector?
Sumesh Wadhera: Industry association like All India Gems & Jewellery Trade Federation (GJF), GJEPC are doing a wonderful job and working very closely with all the players. Recent issue of excises duty on jewellery was resolved by unity of the Industry under the umbrella of these trade bodies. MSME is the back bone of jewellery sector, 80 percent jewellery is made by this sector by traditional karigars who have worked very hard and contributed to the growth of this sector. But lack of infrastructure, poor working conditions and passing on the skill to next generation remains a challenge.
What are the major issues of MSMEs in jewellery sector?
Sumesh Wadhera: Still this sector is not recognized and not given Industry Status. Hence it misses out on benefits from Banks and Government bodies. Need for skill development and ability to attract quality human resources. Government restrictions and regulations need to be liberalized to make MSMEs more competitive with neighboring markets like Dubai, Thailand and Hongkong.
Would you like to give some suggestion to small entrepreneurs to cope-up with those challenges?
He pointed out the fact that more than 10 million people are working in the jewellery industry and the above issues will have a negative impact on the employment generation prowess of the sector as well as the livelihood of millions of workers engaged.
He pointed out the fact that more than 10 million people are working in the jewellery industry and the above issues will have a negative impact on the employment generation prowess of the sector as well as the livelihood of millions of workers engaged.
Excerpts of the interview...Sir...Please tell something about your journey for The Art of Jewellery, India's No.1 jewellery magazine.
Sumesh Wadhera: The Art of Jewellery started its journey in 2002, to address a need for a quality magazine in the jewellery sector. It was the same time when the jewellery industry in India was going through a transformation. It was becoming a more organised segment and new corporate players entering the jewellery sector. Over the years we have worked very closely with the trade and evolved our role as a facilitator and catalyst added value through our various services and products. Today besides publishing "The Art of Jewellery" we have launched its Hindi edition..We have four trade shows in various parts of south India, a special cell for taking delegation to International trade shows. We also have a very strong online presence and were the 1st company to launch Daily e-news for the sector which has more than 50,000 subscribers today.
What kind of challenges you have faced during this success story? Please share few.
Sumesh Wadhera: Being a nascent and niche Industry the magazine had challenges in the initial years. Finding the right talent to reach out the main customer base to a large extent concentrated in Mumbai and in the Western Indian Region. Moreover to source out information for an industry, which is still not completely organised and is family run was a challenge. But gradually we got the right kind of human resources and practices to streamline the whole functional. In-spite of all challenges we never comprised on our quality and values.
How you see the gold jewellery market in India both domestic and exports?
Sumesh Wadhera: India is the world's largest consumer of Gold and Gold Jewellery. Last year we consumed close to 900 tones which is mostly met by imports, as we don't have any major gold mining in India. Gold is so integral to our culture and is considered a hedge against inflation. More than 10 million people are working in the jewellery industry in our country. But recent restrictions and government policies have made a negative impact on gold business. Even the gold jewellery exports have suffered and may end up 50 percent lower volume compared to last year.
Media reports that the gold jewellery exports fall 6.9 percent in October, moreover report adds that it's exports likely to dip by 50 percent in FY14. What is your said on this?
Sumesh Wadhera: As I mentioned due to restrictions and shortage of Gold metal in India, the exporters have suffered and have not been able to meet their export obligations. Moreover volatile gold prices have added to the negative sentiments.
Low availability of raw material is one reason. Second, in Dubai, gold is 21 percent cheaper than in India. There are reports that about half tonne of gold is coming into India from Dubai. In this case don't you think it will give rise to smuggling of gold in India?
Sumesh Wadhera: Already Gold smuggling has become rampant in some part of the country. Smugglers are using the Dubai, Colombo and Bangladesh Route. This will harm the jewellery industry in long run and anti-social and anti-national element will get involved in the business.
What will the best possible step that should be taken by the government to support gold jewellery exports? Your suggestion.
Sumesh Wadhera: First of all Government should make Gold Metal available to exporters on top priority, efforts should be made to enhance the value addition. Bodies like Gems and Jewellery Export Promotion Council (GJEPC) should create awareness and brand India Jewellery across the world. The significant feature of India jewellery being handmade and unique in craftsmanship should reach out to global consumers. Besides basic incentives and infrastructure from Government will go a long way to unlock the full potential of this sector .
You are associated with the leading industry chambers and association. How you analyze the role of micro, small and medium enterprises (MSMEs) in jewellery sector?
Sumesh Wadhera: Industry association like All India Gems & Jewellery Trade Federation (GJF), GJEPC are doing a wonderful job and working very closely with all the players. Recent issue of excises duty on jewellery was resolved by unity of the Industry under the umbrella of these trade bodies. MSME is the back bone of jewellery sector, 80 percent jewellery is made by this sector by traditional karigars who have worked very hard and contributed to the growth of this sector. But lack of infrastructure, poor working conditions and passing on the skill to next generation remains a challenge.
What are the major issues of MSMEs in jewellery sector?
Sumesh Wadhera: Still this sector is not recognized and not given Industry Status. Hence it misses out on benefits from Banks and Government bodies. Need for skill development and ability to attract quality human resources. Government restrictions and regulations need to be liberalized to make MSMEs more competitive with neighboring markets like Dubai, Thailand and Hongkong.
Would you like to give some suggestion to small entrepreneurs to cope-up with those challenges?
Sumesh Wadhera: There are lot of new changes happening in this industry and technology should be leveraged to meet those changes, younger customers needs and preferences are very different from what it used to be earlier hence every entrepreneur in jewellery industry has to constantly improve and innovate their products and services. Jewellery business run on trust and values that should always be forefront of your business. Hard work and perseverance pays in long term.
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