The diamond industry in Surat is facing a manpower crunch. Reason: Cutting and polishing workers from Bihar who returned to their state after losing jobs during the recession are refusing to come back due to development and job generation back home.
“Of the total workers from Bihar, as many as 50 per cent have failed to turn up after the meltdown. This is mainly because of industrial development in their home state. They are unlikely to return in the near future,†says Damji Mavani, secretary, Surat Diamond Association (SDA).
According to industry players, the workers have found jobs in infrastructure and road construction sectors, apart from security services, in Bihar. The Prime Minister’s Rojgar Yojana has also helped Bihar retain its workforce. While some have benefited from the scheme to engage in self-employment, others have gone back to farming.
At present, the Rs 80,000-crore Surat diamond industry’s manpower requirement is 500,000 workers. “The industry has close to 400,000 cutting and polishing workers, of which around 150,000 are from other parts of the country, predominantly Bihar. We are facing 25-30 per cent labour shortage,†says Rohit Mehta, president of SDA.
During the 2008-09 recession, Surat’s diamond industry was among the worst-hit, costing thousands of workers their jobs. Being largely dependent on the export market, diamantaires had to curtail production following a slump in demand for polished diamonds.
Industry players say workers from Gujarat have also moved to other businesses like agriculture and embroidery.
However, the main exodus has been to Bihar, which has attracted huge investments for its industrial sector.
A recent report from the Associated Chambers of Commerce and Industry of India, titled ‘Cluster Development for Inclusive Growth in Bihar’, noted that the state was on a rapid growth path and would create employment for about 600,000 people.
The industry body plans to partner with the Bihar government to develop 14 industrial clusters at an estimated cost of Rs 450 crore. This is likely to provide direct employment to 200,000-300,000 people in 25,000-28,000 industrial units.
Industry experts believe that Surat’s diamond industry will require a fresh lot of workers from within Gujarat, as employment prospects in states like Bihar have improved significantly.