Recent defaults have made a section of traders contemplate moving towards promissory notes.
The impact of GST is particularly stark in the highly fragmented synthetic textile industry, which attracts different GST rates at different stages of production and sale
As the 50 per cent US tariffs on the Indian imports came into effect on Wednesday, the stakeholders of the diamond industry in Surat believe that the market will be affected due to US' decision only for a short period of time as India controls 90% of diamond production.
Diamond exporters are considering stopping the import of rough diamonds.
Surat, which polishes almost more than 95 per cent of the world's diamonds, is poised to become the assorting and trading hub for the precious jewel stone in the next 3-4 years.
Businesses are testing new markets, tapping into domestic demand, and pushing the government for relief.
Surat Diamond Association, the apex body of diamond industry in Ahmedabad, has said there should be a special force for the security of diamond industry in the wake of serial blasts in Mumbai.
Various diamond cutting and polishing units in Gujarat have decided to work five days a week till January next year to weather the global slowdown, a member of Surat Diamond Association said.
Diamond Polishers' Association (DPA), a representative body of diamond workers in the industry in Gujarat has demanded a hike in wages to the tune of about 35 per cent.
The Surat diamond industry has once again extended its vacation, fuelling speculations of retrenchment of workers, as global recession has severely affected the sector.
Industry insiders say they are looking at more than 30 per cent cut in the production that would lead to retrenchment of workers and reduce staff strength. Former Surat Diamond Association president Pravin Nanavaty said, "There is no demand at all from the international market and particularly from the US and European countries."
The proposed exchange is likely to be almost as big as Mumbai's Bharat Diamond Bourse, now said to be fully occupied.
The government has also set targets for the next 25 years. We are working on the target of becoming a $5-10 trillion economy as well as taking exports to a record high, he said.
While gem and jewellery exports have slowed in recent months, the escalating dollar value has put diamantaires in a problem on payments against import of rough diamonds.
Hundreds of diamond cutting, polishing units and textile factories in Surat, considered the diamond hub of India, have been closed for the past three days due to flooding in the city, resulting in losses worth crores of rupees.
Processed diamond exports from India, which meets nearly 80 per cent of global demand, have been hit by the Iraq war and a deadly flu-like virus in South East Asia, industry officials said.
Bankers and couriers to almost the entire diamond industry, which swear by their superiority to India Post or any other courier service.
Contract finally given for Rs 2,400-cr project, with GIFT City-like features
State governments have requested the Centre for export incentives, lifting of import duty in the case of cotton for the textile sector and GST exemptions.
So far, rough diamonds mined from the Panna mines in Madhya Pradesh were auctioned online but displayed only at Panna.
Since most banks have tightened lending to diamond merchants and others are about to do so, many medium and small diamond dealers are approaching large players for credit facility within the industry
She will now shun all the material comforts and luxury, which her family of diamond merchants could have provided her.
Bharatiya Janata Party's prime ministerial candidate, Narendra Modi, last month urged small traders to compete with foreign retail chains through e-commerce.
Surat -- Gujarat's diamond city and the epicentre of the Patidar quota movement -- is set for a tough assembly poll battle as the Congress has added the face of the Patidar agitation Hardik Patel to its arsenal this time.
The sector employs around 1 million skilled and unskilled workers directly and indirectly and decline in exports is a major worry for participants in the value chain.
Another trend: A preference for coloured diamonds among brides, who are pairing them with their groom's birthstone. So, along with yellow or white diamonds, they are choosing pink, green, blue sapphires, emeralds or red rubies.
Since he lives locally, Harish Patel is one of the luckier migrant workers in Surat - in that his employer was able to squeeze in a single shift for him at the weaving unit in Kamrej in Gujarat - unlike others who went home for Holi and other festivals just as the second wave of the Covid-19 pandemic was waxing and ended up stranded in local lockdowns.
Gitanjali Gems and Firestar Diamonds together account for 5.8 per cent of the diamond and jewellery trade in India.
The industry alleges the government has been apathetic, despite their pleas for quick action. However, H2 may be different as The US-China trade war had opened a window for Indian exporters to ship more to America.
'There are 8-12 members living in the same accommodation. While in pre-lockdown days, since most were out on work, social tension among them was less because of limited interaction. But now, no food and livelihood, along with having to live in cramped conditions, is taking a toll on their mental health.'
For the last few days, Surat-based diamond exporter Savji Dholakia has been inundated with job applications.
Documents accessed by Business Standard show owners of suspected Hong Kong-based shell companies are spread across the globe.
Surat houses more than 650,000 powerlooms. Of this, at least 60 per cent have been shut since a month, a loss of Rs 900 crore, finds out Vinay Umarji.
Wielding a broom, the prime minister took part in the drive along with fitness influencer Ankit Baiyanpuriya.
Migrant workers are leaving Gujarat, PM Modi's home state, as they have no work.
The case goes back to 2014, where the diamond merchant had pleaded guilty, though indirectly, for mis-declaration of exports of diamonds.
As many as 17 locations in Delhi, Mumbai, Hyderabad, Jaipur and Surat were raided by the ED.
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