The gem and jewellery industry in Rajasthan is facing a critical labour shortage as exports continue to rise.
In the financial year 2023 (FY23), Rajasthan exported approximately Rs 9,470 crore worth of gems and jewellery, increasing to Rs 11,180 crore in FY24.
Despite this growth, the industry’s future is uncertain as the workforce shrinks, threatening its competitiveness in the global market.
Rise of Chinese Competition
China has become a stronger competitor in gemstone manufacturing, largely due to its adoption of machine-based techniques. Kailash Mittal, President of the Sarafa Traders Committee, explained that mechanisation in China reduces labour costs, giving it an edge over India’s traditional methods. Although Jaipur traders could implement similar technology, Mittal noted that they prefer hand-cutting for higher-end gemstones to maintain quality standards.
“Most of the cutting and polishing of gems in China is done through machines, which helps cut the labour cost. This has led to the work of coloured and semi-precious stones shifting to China, due to which artisans in Rajasthan are left unemployed,” said Mittal.
This shift has displaced many skilled artisans in Rajasthan, who are now looking for other employment as demand for hand-cut gemstones decreases in favour of machine-produced alternatives.
The Impact on Traditional Craftsmanship
Jaipur’s preference for traditional hand-crafted methods reflects concerns about maintaining high-quality standards, but this reliance on labour-intensive processes is becoming harder to sustain as China’s machine-based production gains market share. Jewellers face the challenge of balancing the desire for artisanal craftsmanship with increasing cost pressures and the need to meet growing demand.
Labour Recognition and Welfare Issues
Further complicating matters, the lack of formal recognition for workers in the sector has hindered access to government welfare schemes. Jewellery businessman Vikas Kothari pointed out that the Union Labour Ministry does not classify these workers as labourers, leaving them without the benefits provided by labour protection schemes. According to Kothari, around 10 million workers are directly or indirectly linked to the gem and jewellery trade across India, with major centres in Jaipur, Surat, Navsari, and Kolkata.
Implications for the Jewellery Industry
The current situation in Rajasthan could affect the wider jewellery industry by reducing the availability of skilled artisans. Jewellers may need to adjust their supply strategies, especially if the labour shortage persists or machine-made products become more prevalent. The need for government intervention to address worker registration and welfare schemes is increasingly pressing.
