Pranay Narvekar

Solitaire - - COVER STORY -

Di­a­mond An­a­lyst, Pharos Beam Con­sult­ing LLP

The im­pact of gold im­ports on CAD will con­tinue to re­main an is­sue for the new gov­ern­ment as well and they will con­tinue to take ac­tion to re­strict th­ese im­ports. How­ever, from an in­dus­try per­spec­tive, the new gov­ern­ment should en­sure that the process on the ground should be seam­less and gen­uine man­u­fac­tur­ers should be able to get the gold they re­quire. What needs to be cur­tailed, to re­duce the CAD, is the gold coin and gold bar de­mand. Sud­den in­tro­duc­tion of new rules causes huge dis­rup­tions in the in­dus­try and even af­fects the work­ers. The ab­sence of gold for pro­duc­tion has caused con­sid­er­able stress among work­ers, many of whom live hand to mouth.

For the SME sec­tor, what is required is to es­tab­lish com­mon fa­cil­ity cen­tres and worker train­ing. Com­mon fa­cil­i­ties will en­able smaller units to ac­cess ad­vanced ma­chin­ery and im­prove the qual­ity of their prod­uct. Skill train­ing for work­ers is also nec­es­sary to im­prove the prod­uct and meet the chang­ing re­quire­ments of con­sumers.

On the di­a­mond side, the gov­ern­ment needs to en­cour­age ex­ports. In­creas­ing avail­abil­ity of fi­nance might not nec­es­sar­ily be the best op­tion, as it can lead to mis-al­lo­ca­tion of monies, lead­ing to heart­burn down the road. The fo­cus should be on stream­lin­ing pro­cesses like en­abling memo sales, some per­cent­age of duty free im­ports and al­low freer re­turn of goods sent for cer­ti­fi­ca­tion. The in­dus­try also needs to help the gov­ern­ment by tak­ing mea­sures which in­crease the trans­parency in the busi­ness.

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