Some of the most well known architectural marvels in India, including the Taj Mahal, are known to have used marble obtained from Rajasthan.
However, in this period of economic uncertainty, the once thriving marble industry of Rajasthan, known for its high quality finished product, has been facing the heat.
The prevailing negative sentiment in the economy along with a number of other reasons, including recession in real estate and high tax rate, has put hordes of marble traders and workers out of work or on the verge of quitting the industry.
Chainaram Choudhary, a factory worker, started as a helper or assistant and gradually rose through the ranks but today, he is finding it extremely tough to keep his job. He has worked in the marble industry for nearly two decades.
“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 work. Yes (used to work on this machine) earlier and now as well. It is shut for the time being because product is not there. Earlier, it used to yield 100 pieces. Now, it yields 30 or 40 pieces,” Chainaram Choudhary told India Today.
Chainaram said, “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?”
India Today visited Vishwakarma Industrial (VKI) area in Jaipur to gauge the condition of marble industry- once a flourishing sector of the economy in the desert state.
The industry has been reeling under the weight of high tax rate after the imposition of GST. However, it was later brought down to 18 per cent, which is still considered quite high by marble traders.
“The condition of 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,” Mukesh Khetan, director of Khetan Tiles, told India Today.
“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, more than 25 per cent of working capital is stuck in this. 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,” he added.
Some of the reasons behind the current state of the marble industry include:
> High rate of taxation: It was brought down to 18 per cent from 28 per cent but is still considered quite high by marble traders.
> Recession in real estate market: The fate of marble industry is considered directly linked with that of the real estate market.
> Prevailing negative sentiment in the economy which has been adversely affecting buying.
“Demand has drastically gone down as compared to before. It has gone down by 60 per cent because the real estate market is really down. Because our final consumer is from the real estate. So, till the time property market does not pick up, our market will also not function,” Mukesh Khetan said.
Several traders hold the government and bureaucracy responsible for the current state of affairs in the marble industry. They want the government to ensure measure to help revive the industry sooner rather than later.
“For condition of marble industry, to a certain extent, the government is responsible. The marble mines, for taking environmental clearance, has been put in red category. Marble, mines, granite mines are all in jungles. At the 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, considered rich in minerals and stones, has several small, medium and large units of marble factories. However, the recession in the real estate market coupled with tax and the negative sentiment in the economy has hit the marble industry extremely hard.
Source: www.indiatoday.in
