Diamonds Are Forever
The recession-hit diamond sector in India anticipates considerable improvement in business in the near future. This relief largely stems from the fact that the demands placed by small diamond units in the country have been met by the taskforce established by the Reserve Bank of India (RBI). The sector, which was facing a significant demand slump in both the global and local markets, hopes to recover soon after the recommendations made by the taskforce come into effect.
The taskforce has assured the diamond industry of taking adequate relief measures including financial assistance and training support to skilled diamond workers. The taskforce has issued guidelines to banks to extend financial support to SMEs in the sector and reschedule their loans, thus easing their financial constraints to a great extent.
Besides providing adequate and timely funds, banks have also been asked by the taskforce to enhance their scope of lending against the stock of polished diamonds held by units in their inventory. This move is expected to help the diamond industry recover gradually from the deep slump, which it has been enduring for over six months.
Emphasis has also been laid by the taskforce to assist around 4.13 lakh skilled diamond workers, who have lost their jobs recently as a result of the worsening economic scenario. Extension of soft loans with a longer repayment cycle extended by banks may well offer the much needed respite to the jobless diamond workers. Establishing of an education fund will also assist displaced workers to make the payments of school fees for their children.
Now, that most of the demands of the diamond units and industry bodies have been met and positive measures are being introduced, SMEs in the diamond sector can soon expect a change from their current dismal circumstances.
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About the Author:
David Parks is a well known author and has written articles on B2b Website and B2b Marketplace, suppliers, Manufactures and many other subjects.
