Lok Sabha Question No. 1820 (UNSTARRED), answered on 2024-12-05
Subject: Jewellery Trading Industry
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. D Ravi Kumar

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK  SABHA UNSTARRED QUESTION NO.1820 TO BE ANSWERED ON 05.12.2024

## JEWELLERY TRADING INDUSTRY

## 1820. DR. D RAVI KUMAR:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the  steps  being  taken  by  the  Ministry  to  address  the  issue  of  misrepresentation  of  jewellery weight in the jewellery trading industry and whether there are any plans to introduce regulations that standardize and disclose weight loss during the manufacturing process;
- (b) if so, the details thereof;
- (c)  the  manner  in  which  the  Ministry  intend  to  ensure  fair  compensation  for  skilled  labour  in  the jewellery  industry,  particularly  considering  that  only  three  percent  of  the  wastage  compensation currently reaches these workers;
- (d) whether the Government has conducted studies or held consultations with stakeholders in the jewellery  industry  to  assess  unethical  practices  such  as  weight  misrepresentation  and  inadequate labour compensation and if so, the major findings thereof; and
- (e) whether  any  initiatives  or  policies  are  being  proposed  aimed  at  promoting  transparency  and ethical  standards  within  the  jewellery  industry  while  ensuring  fair  practices  for  consumers  and workers?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) & (b): Under the Legal Metrology Act, 2009 and Rules made there under, the verification of weighing instrument and weights used for trading of Jewellery, as also the enforcement there under, is done by the  State Governments.  In  the  case  of  exports  of  gems  &  Jewellary,  there  is  100  per  cent appraisement  of  goods  by  customs  with  respect  to  Jewellery  weight  at  the  time  of  exports.  Labour compensation value addition norms, as prescribed by the Handbook of Procedures notified under the Foreign Trade Policy 2023, are also checked by customs at the time of exports.

(c) & (d): In  the  case  of  exports  of  Gems  &  Jewellary,  wastage  or  manufacturing  loss  for gold/silver/platinum  Jewellery  is  admissible  as  per  the  Handbook  of  Procedures  notified  under  the Foreign Trade Policy 2023.

The National Institute of Labour and Economic Research and Development (NILERD) under the aegis of NITI Aayog published a paper in 2020 called 'Socio-economic and working conditions of workers  in  the  Indian  gold  industry'.  To  encourage  and  streamline  the  manufacturing  of  gems  and Jewellery,  various  state  governments  are  looking  at  promoting  the  set-up  of  Jewellery  parks  by themselves or by industry bodies. These integrated industrial parks provide access to facilities under one  roof, including manufacturing  units,  commercial  areas,  residences  for  industrial  workers, commercial support services and an exhibition centre. Jewellery parks would also help modernize the trade,  as  units  would  be  better  designed  and  there  would  be  ample  space  available  for  modern machinery.

(e): Under  section  24  of  the  Legal  Metrology  Act,  2009,  and  Rules  made  there  under,  the verification  of  weighing  machines  used  for  trading  of  Jewellery  is  done  by  the  Legal  Metrology Offices of the State Governments every year as per the provisions of the Legal Metrology (General) Rules, 2011.

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