A TOI report has said that many of the workers who had been laid off during the economic downturn are now seeking to return to the diamond cutting and polishing units in Surat. Almost 2 lakh workers had lost their jobs as diamond cutters and polishers when exports to the UK and US fell through the deepening economic crisis there.
The TOI report says that about 50,000 diamond workers had shifted to the embroidery industry earlier this year and now, as the diamond industry shows signs of revival and recession setting in the embroidery business many are returning to the diamond industry.
According to the report, there is a reason behind the exodus of the diamond workers from the embroidery industry. First, the industry is passing through a rough phase following the decreased demand for embroidered saris and dress material from key markets like Maharashtra, Madhya Pradesh, Punjab, Kolkata, Bihar and Uttar Pradesh. Secondly, the installed capacity of the embroidery industry has gone up from a mere 5,000 embroidery machines four years ago to over 50,000.
Sources said the diamond industry is facing a shortage of 60,000 diamond workers. Out of the two lakh diamond workers laid off last year, over 50,000 had found new jobs in the embroidery industry and many had returned to their hometowns in Saurashtra.
"More than 40 per cent of the closed diamond units have reopened in the last three months. Now, these units are on the lookout for their old workers who were forced to leave during the time of recession," said KK Sharma, executive director, Indian Diamond Institute (IDI).