Credits : India Today

The Skilling Challenge: Gems and Jewellery industry of Surat

Gems and Jewellery industry, Polished Diamonds and Diamond Cuttings, Skill Development, District Skill Development Plan, SANKALP, PPP Model

The Gems and Jewellery industry is one of the fast-growing and dynamic industries of the Indian economy. It is one of the major contributors to the Indian export basket. The industry has achieved remarkable growth over the last five decades, up from US$ 29.35 million in 1966-67 to US$39.75 billion in 2019. Diamond is the leading export commodity. Notably, Polished Diamonds and Diamond Cuttings account for 60% of the total export of the Gems and Jewellery sector. Specifically, the Indian Diamond Industry accounts for 95% share in the world’s total export of Polished Diamonds and Diamond Cuttings. Notably, 90% of this work is done in Surat District.

Students learning about Diamonds and Jewellery

The Gems and Jewellery industry in Surat is the spinal cord of its economy. Surat is a hub of Polished Diamonds and Diamond Cuttings units globally. The Gems and Jewellery Industry in the district is quite large. It employs more than nine lakh people, and almost 1000 small, medium, and large-scale units are engaged.

Despite its pre-eminent status, Surat faces multiple challenges in its attempt to maintain its position of the world leader in processing and cutting diamonds. Significant challenges revolve around ensuring the quality of the polished diamond and technological advancement based on international standards. Therefore, the skill development of industry workers becomes the key to improving the issue of quality at large. Even though the industry requires a highly skilled labor force in all stages of activities, formal training programs are a rarity. 

District Skill Committee Meeting to discuss growth path for the Gems and Jewellery Sector, Surat

Skill development of workers in the Gems and Jewellery industry is tricky and arduous. The nature of business is highly capital intensive. Therefore, none of the formal government institutions have set up the required infrastructure. Unequal cutting undermines production quality. Further, proven incidents of theft are an unwanted challenge in this industry. Therefore, the industry performs with close-knit communities that maintain the secrecy and trust of the diamond trade. The industry's recruitment of employees is based on recommendation and relation with older trustworthy employees only. 

The Skilling Challenge

On the one hand, the Gems and Jewellery industry requires world-class skills. But on the ground, there is a shortage of the same. Its capital-intensive nature and traditional community-based workstyle add to the challenge. In order to understand the actual needs of the industry and the skilling demands, a survey of 15 diamond processing companies was done while preparing the District Skill Development Plan 2020

The major finding was that more than half the workforce in the diamond industry was semi-skilled or learned through practice, and less than 10% workforce was certified. To solve this challenge, the government of Gujrat has launched GoG SANKALP (Industrial Kaushalya Vardhan Kendra 2.0). This project aims to encourage industries to become training partners, provide industry-relevant training, and assure employment.

The government will support industries to set up a training centre at their premises or a separate training centre. The government supports Short-term Training and Recognition of Prior Learning (RPL) training. The scheme has provided a chance to diamond processing companies to set up their required training centre within their premises, train a quality workforce, and increase productivity.  

PPP Model: A Win-Win Solution

The Government of Gujarat had launched the scheme in July 2020. Industrial associations and industries were invited to participate in the scheme. The District Skill Committee was keen to start a training centre for the Gems and Jewellery industry in Surat. As a Mahatma Gandhi National Fellow, I worked with a Gujarat Skill Development Mission (GSDM). The District Skill Committee of Surat mobilized 67 industries and seven industrial associations for the project. To mark the first success of the project, 28 industries and four industrial associations applied for the GoG SANKALP Project.

As part of the pilot project, a formal training centre started in Surat for the first time. Currently, it is focusing on the job role of Basic Assorter - Jewellery. A batch of 60 candidates began their course in November 2020. The most crucial element of this pilot project is that it is based on the PPP model, creating a win-win situation for industry and GSDM. GSDM partnered with Surat Jewellery Manufacturing Association. The government provides the a cost of training, and the industry has set up the training infrastructure, machinery, and raw material cost. The initial investment in raw material and machinery has been born by SJMA, and it also ensures the placement of trained candidates in their associated industries. After the success of the first two batches, which passed out in January 2022, the plan is to increase the training capacity in the Gems and Jewellery industry trades to 600 candidates every year. 

The District Skill Committee and the Gujarat Skill Development Mission have come with a PPP model-based solution for the skilling challenge of Surat. Government and private partners shared responsibilities and expenses to conduct the first successful pilot batch. The first batch of skilled candidates will help review and redesign SANKALP's initiative to develop the Gems and Jewellery industry in Surat.

References:  

GJEPC – Gems and Jewellery Export Promotion Council  https://gjepc.org/

  • Jaykar Joshi is currently a Mahatma Gandhi National Fellow at IIM Bangalore. He has previously worked for four years in grassroot development in the field of livelihood and community institution developments. He is a Post Graduate in development management from The-Dhan Academy.

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