Gold Buying Pause May Trigger Job Shift in South Gujarat

Surat |  Gujarat — Prime Minister Narendra Modi’s appeal urging citizens to avoid buying gold for a year continues to spark intense debate, with industry voices warning that the move could trigger widespread job losses in South Gujarat’s jewellery sector.

While the appeal is aimed at reducing gold imports and strengthening the country’s economy, stakeholders say the ripple effects on employment and migration could be significant.

“This decision may help the national economy, but the industry must prepare for a major shift,” an industry observer said.

Employment Concerns in Jewellery Hub

South Gujarat, particularly Surat, is one of India’s largest jewellery manufacturing hubs. Industry estimates suggest that nearly nine lakh workers in the region depend directly or indirectly on the sector for their livelihood.

Experts warn that a sharp drop in demand for gold jewellery could reduce production and force businesses to cut jobs.

“If demand declines significantly, many artisans may be left without work,” a trade representative said. “This could lead to large-scale migration of skilled workers back to their home states.”

Migration and Economic Shift

A large portion of jewellery artisans in South Gujarat come from other states, including West Bengal. Industry voices believe that reduced work opportunities could push many migrant workers to return home in search of employment.

Some observers say the shift could create new opportunities in their native regions while reshaping the labour dynamics of Gujarat’s jewellery industry.

“This could trigger a major redistribution of skilled labour across states,” an analyst noted.

Debate Over Economic Strategy

Supporters of the Prime Minister’s appeal say the move is aimed at strengthening India’s economic self-reliance by reducing foreign exchange outflow due to gold imports.

Economists point out that India spends billions annually on gold imports, which significantly impacts the trade deficit.

“The idea is to encourage financial discipline and strengthen the economy,” an economist explained.