Most of the well known architectural marvels in India, including the Taj Mahal, are renowned for the marble used obtained from Rajasthan.
However, the time when the country’s economy witnessing downfall, the marble industry of Rajasthan, which is highly acknowledged for its high-quality finished products, is experiencing its adverse effects.
The economic slowdown along with several other factors like the recession in real estate, high tax rates and poor market sentiments, has an unemployed number of workers and put marble traders on the verge of quitting the industry.
According to a factory worker, Chainaram Choudhary, who started his career as a helper or assistant and get promoted to higher ranks, after nearly two decades of his working tenure, is finding extremely tough to save his job today.
“Yes, it is bad. Is 100 per cent bad? I had told you that earlier 60 labourers used to work and now, it is in front of you, 50 or around that many works. Yes (used to work on this machine) earlier and now as well. It is shut for the time being because the product is not there. Earlier, it used to yield 100 pieces. Now, it yields 30 or 40 pieces,” Chainaram Choudhary told India Today.
According to his claim, several workers have lost their jobs due to the prevailing condition in the marble industry and he is afraid of losing his job one day. He has the responsibility of managing expenses for a family of five members which he has been finding extremely tough within his meagre income of Rs 10,000 to 12,000 monthly. Any mishap like losing his job in this current state of marble industry will put him into a more adverse situation.
Chainaram stated, “Are facing (a lot of difficulties) right now. Recession period is on, the owner can throw us out any time. What is to be done?”
In his recent visit to Vishwakarma Industrial (VKI) area in Jaipur, India Today questioned marble traders and workers to find out the current situation of marble industry-once a thriving sector in the economy of Rajasthan.
Since the introduction of GST, the industry is witnessing lurch under the influence of the high GST tax rate. However, the tax rates were later reduced to 18 per cent still it is quite high as considered from marble traders.
Mukesh Khetan, director of Khetan Tiles, expressed his view to India Today, The condition of the marble industry is very bad since the time this GST pattern of government has come. When there was VAT on marble, then the taxation was 5 per cent. Since GST resume came, then 28 per cent was imposed, the tax was very heavy. After that, the government reduced it a bit to bring it to 18 per cent.
He further added, Even now, the government taxation is so much that it is getting difficult for us to survive. All our money is stuck in taxation. Whatever export, import we do, in that as per 18 per cent GST rate on marble industry, more than 25 per cent of working capital is stuck in this. The government does not make refund on time. Whatever we get in export, all of that stuff goes without tax. So, we do not get tax recovery.
Following are the few reasons being considered for the current state of the marble industry
High Tax Rates: However, the initially implied GST tax rate of 28 per cent was brought down to 18 per cent still the rate is considered quite high by the marble traders.
Recession in the real estate market: The marble industry directly links to the real estate market which already is going through a recession and slowdown.
Also, the poor market sentiments in the economy are adversely affecting the buying nature of the masses.
“Demand has drastically gone down as compared to before. It has gone down by 60 per cent because the real estate market is down. Because our final consumer is from real estate. So, till the time property market does not pick up, our market will also not function,” Mukesh Khetan said.
While several traders from the marble industry find the government and bureaucracy responsible for the current situation of the marble sector. They wish for the government to make a sort of changes to measures being taken to improve the condition of the industry as soon as possible.
“For the condition of the marble industry, to a certain extent, the government is responsible. The marble mines, for taking environmental clearance, has been put in the red category. Marble, mines, granite mines are all in jungles. At most, one or two machines are used… It has been forcibly been put in red (category)… Yes, government policies on marble, tax earlier used to be not more than 5 per cent, that today, even after reduction is 18 per cent,” Jagdish Prasad Khetan, a marble businessman, said.
Rajasthan, the land of minerals and stones, has a number of marble industries whether small, medium or large units. However, several factors like the recession in the real estate market, higher tax rates and poor market sentiments have affected the marble industry adversely.
According to the experts, if this situation continues to the long term, it will be really hard for the marble industry to bounce back.
Source: https://www.indiatoday.in/
