Click to play videoMumbai: Poor global gold and diamonds sales is taking the sheen out of India's diamond-polishing industry.
The Indian diamond polishing industry, which polishes 55 per cent of the world's diamonds by value, is finding itself against a stone wall. The gems and jewelry exports in November came in 35 per cent compared with last year. With slowing demand jewelers are battling rising inventories.
“If our goods are not moving, it means we have a larger inventory. If we have a larger inventory, our interest costs and costs go up. That makes it unfeasible for us to sell in the international market,” Chairman, Gem and Jewellery Export Council, Vasant Mehta.
The diamond polishing industry has seen about 65,000 workers being laid off between August and October this year and experts say another 65,000 jobs may be cut over the next two months.
The industry now hopes government aid will help keep the sparkle from fading.
First on the agenda is cheaper and easier dollar finance. At present, interest rates range between four and five per cent and the industry wants this to be limited to only 1per cent over libor.
It also wants concessionary one-year corporate loans at 7 per cent against excess inventory and asks that a company's credit rating not be reduced due to delay in receivables.
It is also looking at alternative markets like Russia, Kazakhastan, Uzbekistan and the Middle-East and at boosting domestic demand through promotional campaigns.
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