An analysis by Crisil shows a fifth of the MSME sector by value is expected to witness an increase in working capital requirements this fiscal year, compared with pre-pandemic (FY20) levels; Image: AM PANTHAKY/ AFP
As the world celebrates MSME Day on June 27, all is not well with the micro, small and medium enterprises (MSMEs) in Gujarat. Especially the diamond industry in Surat. A major contributor to India’s gem and jewellery exports, the diamond industry employs around 8 lakh people and accounts for exports of about Rs 3 lakh crore. Demand in the industry has been significantly impacted due to reasons such as global economic slowdowns, mainly in China, which is one of India’s biggest diamond export markets, and also the Russia-Ukraine war, which has stopped the import of rough diamonds from Russia. Recently, the G7 group of nation’s decision to put fresh sanctions on Russian diamonds has put the jobs of diamond workers in Surat at stake.
In the past three months, eight diamond workers in Surat have died by suicide, and about 15,000 of them have been laid off, while the industry's losses have increased from 1 percent to 15-20 percent annually in the last five years, The Print reported.