Jewellers Back PM’s Gold Pause Appeal, Warn of 80% Turnover Hit

Ahmedabad | Gujarat — Prime Minister Narendra Modi’s appeal urging Indians to avoid buying gold for a year to reduce the country’s import burden has sparked a strong but cautious response from the jewellery industry. While jewellers in Gujarat say they fully support the national interest behind the call, they warn the move could trigger a severe economic shock for millions dependent on the sector.

Gold and crude oil imports are among India’s biggest foreign exchange drains. The Prime Minister’s appeal aims to reduce the widening import deficit and strengthen the country’s economic stability. However, industry leaders fear the ripple effect on livelihoods could be immense.

“We respect the Prime Minister’s appeal and understand the economic necessity,” said jewellery industry representative Deepak Choksi. “But the long-term impact on our sector could be devastating.”

Turnover May Collapse by Up to 80%

Surat’s jewellers say the industry is already under pressure due to record-high gold prices and weak demand. According to Choksi, businesses are currently operating at barely 40% of their usual turnover.

“If the turnover drops by another 40%, we may be left with only 20% business activity. That will be extremely difficult to survive,” he warned.

The city is not only known for diamonds but is also a major jewellery manufacturing hub, making the potential slowdown a serious concern for local economic stability.

Livelihood of 6 Lakh Artisans at Risk

The biggest worry, industry leaders say, is employment. Surat alone supports approximately 5 to 6 lakh artisans, craftsmen, and workers linked to jewellery manufacturing. Around 2,000 to 2,500 households directly depend on the sector for income.

“Our biggest concern is that artisans continue to get work,” Choksi said. “These are skilled craftsmen whose livelihoods depend entirely on consistent demand.”

Across India, the gem and jewellery sector employs nearly five million people and contributes significantly to exports and domestic trade.

Industry Suggests Recycling Old Gold

While backing the Prime Minister’s economic reasoning, jewellers are urging the government to introduce measures that keep the sector functioning.

One key suggestion is to encourage recycling and circulation of old gold.

“In Indian culture, gold is part of every life event from birth to death. If a scheme is introduced to bring old gold into circulation, demand can be met without increasing imports,” Choksi explained.

Industry stakeholders believe such a policy could balance national economic priorities while protecting jobs.

Sector Shows Solidarity with Nation

Despite concerns, the industry has expressed full support for the government’s broader economic goals. Leaders highlighted the sector’s resilience, recalling past regulatory challenges like the Gold Control Act and the 80:20 rule.

“With exports worth nearly USD 28 billion and a domestic market of USD 85 billion, the sector remains a pillar of India’s economy,” an industry spokesperson said. “We will act in the national interest while safeguarding employment.”