Mumbai, May 12 (IANS): Union Commerce and Industry Minister Suresh Prabhu on Friday said lenders should not hesitate in funding the gems and jewellery industry.

"With 3 million new jobs on the anvil, the banks should not hesitate to fund the industry efforts which are bonafide, transparent and above board.

"Also considering the fact that the sector is on a growth spiral and in view of the potential the industry has in future, the banks should further step up lending efforts to legitimate players fuelling the trade," the Minister said.

Prabhu unveiled a white paper drafted by Gem and Jewellery Export Promotion Council (GJEPC) at the one-day seminar titled "Diamond and Jewellery Financing 2018: Mitigating Risks Effectively".

He hoped the active participation of banks, ECGC and other stakeholders would help in strategising for the development of the gems and jewellery industry that has "a proven track record of being labour intensive, continuous job creation and economic development".

"We will never encourage wrongdoers in the industry but will ask our financial system to support all genuine players in the gems and Jewellery sector. This is essential to help the industry realise the full potential."

Innovative financial instruments and risk coverage must be provided to all genuine businesses in the sector, he added.

The event -- organised by the gems and jewellery industry to find ways to reduce risks and infuse confidence into financiers -- was attended by leading banks and financial institutions including the SBI, Central Bank of India, IndusInd Bank, ECGC and others.

It also witnessed a huge turn out from the major industry players, a statement said.

"This is the only industry in India who has created arbitration mediums with the banks and parties in case of NPA to achieve recoveries," GJEPC Chairman Pramod Agarwal said.