New Delhi, Nov 14: Around 50,000 artisans employed
in the gems and jewellery sector have lost their jobs as a
fallout of the global economic meltdown, Gems and Jewellery
Export Promotion Council has said.
"Over 3-4 percent 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 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 percent growth in the
first half of the current fiscal, exports of gems and
jewelleries declined in October as reduction in US consumer
spending started impacting the global suppliers.
The US accounts for 35 percent 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 Jewellery Association Ashok
Minawala warned if the situation deteriorates, "Mumbai will be
worst affected" as over 90 percent 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
percent drop in overall exports during October.
Besides gems and jewellery, the other affected sectors
include textiles, handicraft and leather products.
Bureau Report
