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Photo by Gaurang Joshi
Surat: Prime Minister Narendra Modi’s call to Indians to stop buying gold for a year to save foreign exchange could affect employment and domestic trade, stakeholders in the gems and jewellery sector feel. While saying that they support the call and understand its importance, leaders from top trade bodies like the Gem and Jewellery Export Promotion Council and the All India Gem and Jewellery Domestic Council (AIGJDC), say that a blanket reduction in gold jewellery purchase may impact around “1 crore jobs” across India. They said the bodies are working to find ways to address concerns raised by the PM, while preventing its adverse impact on the gems and jewellery industry.According to trade estimates, nearly 1 crore people are directly or indirectly dependent on the industry for livelihood. Any sharp fall in domestic jewellery consumption could hit workers, artisans, traders, polishers, small retailers, machinery manufacturers, banking and other sectors across the country.“Apart from those directly involved in diamond, gemstone and jewellery manufacturing, there is a huge sales and services sector that depends on gems and jewellery. Further, machinery manufacturing, packaging and a large section of hospitality and other services depend upon the sector,” Kirit Bhansali, chairman, GJEPC, told TOI. “Around 1 crore people are dependent on the gems and jewellery sector and we are working with the govt to find out a way just as we have managed various adverse conditions in the past,” he added.The appeal comes at a time when the industry is already under pressure from weak global demand and geopolitical tensions affecting key export markets. Industry voices say domestic demand has become especially important as international markets remain uncertain. The US continues to be a major destination for Indian diamonds, while China, once another leading market, has slowed significantly. In this changing landscape, India has now replaced China with a 12% share, according to a De Beers report.Traders argue that jewellery consumption within India plays a crucial role in sustaining the sector when exports weaken. A prolonged decline in purchases, they fear, could deepen stress in an industry already struggling with reduced overseas orders. The concern is that a yearlong pause in gold jewellery buying may save foreign exchange, but could also disrupt livelihoods on a massive scale.“The gems and jewellery industry supports the PM’s statement and understands in which condition the statement has come. But we also fear impact on around 1 crore jobs from manufacturing to sales and supporting systems of banking, insurance, packaging, logistics and others,” Rajesh Rokde, chairman, AIGJDC, told TOI. “We are going to meet the PM and discuss ways to address the concerns of govt and also protect the industry from adverse impact.”Rokde claims that the gems and jewellery sector contribute to around 7% of the country’s GDP.Surat Diamond Association president Jagdish Khunt said, “The PM’s suggestion is important in the current situation and we need to find out ways to keep the industry running from the alternatives. Recycling of old jewellery can support the industry in current times as gems used in jewellery require recut and polishing once removed from a jewellery.”
