The Hindu Business Line : Nearly 50,000 gems, jewellery artisans lose jobs

NEW DELHI: Around 50,000 artisans employed in the gems and jewellery sector have lost their jobs as fallout of the global economic meltdown, Gems and Jewellery Export Promotion Council has said.

"Over 3-4 per cent people in the sector, which employs over 1.3 million, have lost their jobs due to recession in the US and Europe, the two big high-end markets for Indian exporters," Gems and Jewellery Export Promotion Council Chairman, Mr Vasant Mehta said.

He quickly added, "If the global recession continues the job losses may rise in the sector, which employs over 1.3 million people". After logging in a healthy 18 per cent growth in the first half of the current fiscal, exports of gems and jewelleries de clined in October as reduction in US consumer spending started impacting the global suppliers.

The US accounts for 35 per cent of India's 21.88 billion dollar exports of gems and jewellery. Other major markets include European Union, Hong Kong and the UAE. Demanding fiscal and monetary help from the Centre, Chairman of the All India Gems and Jewe llery Association Ashok Minawala warned if the situation deteriorates, "Mumbai will be worst affected" as over 90 per cent of exports are done from the western metropolis.

Exporters are seeking sops that include cut in bank interest rates and specific interest subsidy for the export sector. The global meltdown has led to a steep decline in the total exports from the country. Preliminary data indicates 15 per cent drop in overall exports during October. Besides gems and jewellery, the other affected sectors include textiles, handicraft and leather products. - PTI

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