Imitation jewellery players seek government intervention to take on Chinese competition

Faced with the Chinese competition, India's imitation jewellery makers have sought government support to survive. Having a turnover of over Rs 10,000 crore, India's imitation jewellery sector has already lost almost 25-30 per cent business to huge dumping by the Chinese Dragon, traders claimed.

Traders also informed that illegal import of imitation jewellery has increased from China, thereby hurting not only the industry but also revenues for Indian government.

"Due to dumping from China, Indian manufacturers have lost almost 25-30 per cent business. We must stop it, otherwise it will inflict major damage to the industry," said Nagendra Mehta, secretary of Imitation Jewellery Manufacturers Association of India (IJMA).
 

According to IJMA, imitation jewellery import from China has increased to Rs 4,000 crore a year. However, on the government records it shows nearly Rs 1,500 crore.

Mehta said, "Due to illegal import, Indian government is losing about Rs 500 crore worth of revenues every year."

IJMA had earlier asked the Central government and met the concerned ministry officials to impose anti-dumping duty on imitation jewellery import from China.

Nagendra Mehta president of the Rajkot Imitation Jewellery Association also mentioned that they have talked to the Central government on the issue but so far there has been no response from them.

Mehta added, "Our business has reduced by almost 20 per cent due to import from China. In terms of pricing and manufacturing of imitation jewellery, Rajkot can beat China. But we need to be organized. Rajkot enjoys monopoly in handmade jewellery, as we have well-trained and experienced workers here and the cost of labour is very low compared to any other place in India."

Rajkot, which is the manufacturing hub for imitation jewellery in India, is a victim of Chinese dumping. According to Rajkot imitation industry sources, traders have now started purchasing finished jewellery from China.

Also, the domestic market is not doing well due to higher cost of production and overall inflation, which restricts the buying of imitation jewellery. Besides dumping from China, factor such as higher inflation is also hurting the industry. The exports are also less from the gulf and African country.

Commenting on it, Nagendra Mehta said, "Prices of basic necessities has increased. It has become difficult for common people to fulfill their basic necessities. In such a scenario, why would they purchase imitation jewellery? Such factors have reduced our business in recent times."

In view of the fierce competition from Chinese imports, IJMA has taken a few steps to safeguard its members. It has started branding India-made imitation jewellery in the last two years. IJAMA is also promoting automation in manufacturing segment and asked manufacturers to adopt technology.