Gems, jewellery industry sacks 100,000 workers

Gems, jewellery industry sacks 100,000 workers


December 26, 2008

The gems and jewellery industry reeling under the global recession has laid off about 100,000 workers, an industry leader said on Friday.



"This is for the first time in four decades that the diamond industry is facing a severe liquidity crunch and has laid off 1,00,000 people recently," Gitanjali Group managing director Mehul Choksi said in Surat.
Text: Press Trust of India

Over 1.3 million people and their families depend on the $50-billion Indian gems and jewellery industry that has been hit hard with exports nosediving and imports of rough diamonds remaining suspended for a month till Thursday.
The Gems and Jewellery Export Promotion Council (GJEPC), which apprehended 40 per cent reduction in demand, has since withdrawn its call for suspension of imports.



Image: A man inspects diamonds while grading them at a diamond merchant's workshop in Mumbai. | Photograph: REUTERS/Arko Datta

Of the $50-billion industry, exports account for $20 billion. The country manufactures 90 per cent of the world's diamonds as per the industry players, while Surat alone accounts for 70 per cent.
"But we are passing through a very rough phase with employment of miners and those polishing gems at risk," Federation of Indian Chamber of Commerce and Industry Secretary General Amit Mitra said.
Image: An employee at a diamond merchant's workshop grades diamonds. | Photograph: REUTERS/Arko Datta