ગુજરાતી
English
Two years of recession in small industries of diamond, steel, textile industry
However, Bhupendra Patel of Gujarat claims to shine like a diamond
Dilip Patel
Ahmedabad, 8 December 2024
It is estimated that at least 10 lakh workers have become unemployed in Gujarat due to recession in small industries like diamond, steel, textile. It is believed that 5 lakh people lost their jobs after Diwali in diamond factories alone.
The Chief Minister’s claim is something else
Like former Chief Minister Vijay Rupani, Chief Minister Bhupendra Patel said that micro, small and medium-sized units are flourishing in Gujarat. Business has increased. The contribution of MSME units in Gujarat’s income has increased to 40 percent. Gujarat ranks third with 30 percent in exports, 16% in industrial production, 8.6% in GDP.
Gujarat ranks fifth in the country with enterprise registration of 21.82 lakh units. There are 20.89 lakh micro enterprises, 84 thousand small enterprises and 8700 medium enterprises. 32.50 lakh as per priority sector lending. Gujarat has seen an average growth of 25 to 30 percent per year in the registration of industrial units during the five years.
Chief Minister Bhupendra Patel claimed that Rs. 20899 crore has been given to 47 thousand MSME units of Gujarat in the year 2023-24 and in 2024-25 till November. But he refused to give details of how many crores of rupees were given to the diamond industry.
The MSME industries of the state claim to contribute 40 percent to the progress of Gujarat. The government levies heavy taxes from them. But does not help in adversity.
See the reality
Due to the policy of the BJP government, 55 thousand industries including pharmaceutical parts, oil engines, brass parts are dying. Thousands of diamond units are closed. Gujarat is ranked fifth in MSMEs and first in startups in the country not because of the government but because of the traders and entrepreneurs.
July 2024
In 4 years from July 2020 to 2024, 4,861 medium, small enterprises – MSMEs have closed down in Gujarat. In which 5876 micro, 89 small and 7 medium units were closed. Industries in Gujarat, which is at number three in the country after Maharashtra and Tamil Nadu, are in the grip of recession. According to the MSME Ministry of the government, three to four industries are falling sick every day in vibrant Gujarat.
According to the government claim, 19.60 lakh units were registered in Gujarat. The government had earlier announced that 1.07 crore people were getting employment.
Out of business
Maharashtra – 12,233
Tamil Nadu – 6,298
Gujarat – 4,861
Rajasthan – 3,857
Bihar – 2414,
Haryana – 1531,
Karnataka – 2240,
Kerala – 1336,
Madhya Pradesh – 1653,
Telangana – 1236,
Uttar Pradesh – 3425,
West Bengal – 1548,
Delhi – 947,
Jammu and Kashmir 516
In 4 years, 49,342 units have been closed in the country.
In 2022-2023, about 1 crore 78 lakh factories were running in the manufacturing sector. Which was 1 crore 97 lakh in 2015-16. A cut of 9.3 percent was made. The number of people working in it decreased by 15 percent.
Small business
In 2014, there were about 3 lakh registered small and medium enterprises in Gujarat, of which about 95 percent were unregistered. 9 percent of small and medium enterprises closed down.
1500 industries closed down in GIDC in 2021.
According to the website of the Industrial Director, out of 48 thousand registered factories, 38 thousand factories were running in 2024 and 9800 factories have closed down.
Unemployment is at its peak
In the 10 years of Modi rule, there has been a six percent increase in educated unemployed. The India Employment Report 2024 clearly states that unemployment has increased among educated youth in India. The number of unemployed youth with secondary or higher education has increased. The share of educated youth in unemployment is 54.2 percent, which will increase to 65.7 percent in 2022.
Gujarat
Gujarat has a total of about five lakh units, out of which 70 thousand units are located in GIDC. In Gujarat alone, 8500 plots and 500 sheds are lying vacant in industrial estates. While 2200 industries are closed. There are 228 industrial estates here in an area of 36000 hectares.
In February 2024, out of 3.7 million small and medium-sized factories in India, 35,680 factories have closed from 2020 to February 2024. In which 13,290 units were closed in 2022-23. 6,222 were closed in 2021-22. In which 3,243 small units were closed in Gujarat. Due to the closure of 34 thousand industries, 1 lakh 20 thousand people lost their jobs out of 17 crore jobs.
Stainless Steel
October is considered a month of short recession. The month of October has been the worst since April 2020. 80 percent of the stainless steel MSMEs in the country are in Gujarat. 3-35 percent of the units went out of business. The same situation is in Alang. Out of 80 induction furnace companies in Ahmedabad, 20 companies have closed business. At the same time, more than 100 re-rollers (manufacturers of various items like utensils) have closed due to cheap imports.
Textiles
Although the textile industry in Surat and Ahmedabad was doing good business in the world in 2023, out of 400 textile processing units in South Gujarat, 20 large units making 1 lakh meters of cloth worth Rs 5 crore were closed.
The production of Surat textile industry of Gujarat in 2023 decreased by 30-40%.
Production and employment were reduced by 50 percent.
Surat is the second largest textile industry in India worth Rs 80 thousand crore after Tirupur in Tamil Nadu.
Surat is a textile manufacturing hub.
Employs 20 lakh out-of-state workers.
2.5 crore meters of cloth produced per day as compared to 4.5 crore meters. Surat has about 50 thousand textile manufacturing units. The total production in the industry has fallen by about 30%.
Import of cheap Chinese clothes has increased.
Diamond
On 4 December 2024, 15 thousand employees were fired from Maruti Impex Company, a diamond manufacturing company in Surat. Suresh Bhojpara, owner of Maruti Impex, suffered a brain stroke.
In October 2023, due to a 20 percent recession in Botad, more than 40 percent of diamond factories were closed. According to industry estimates, the Navratri festival will come later.
Surat has 6 lakh diamond polymers and 5 thousand small, medium and large factories. 10 people are employed in one unit. The situation was the same in Surat. Out of 60 lakh people working in diamond factories, 50 percent became unemployed. Surat produces 85% of the world’s diamonds.
The Surat Diamond Bourse was inaugurated by Prime Minister Narendra Modi on 17 December 2023. Since then there has been a severe recession. With 4,200 office rooms, the world’s largest office complex was built, but the recession has broken the back.
After Diwali, 50 percent of the factories have not been able to start till December 2024. Up to 75 percent of the total natural diamond industry has not resumed. Diamond prices have fallen by 40 percent since the 2-year recession.
There will be as many diamonds in 2024 as were made in 1980. The supply of raw diamonds is almost the same as it was 44 years ago.
There are 15 lakh jobs in 8 thousand diamond cut and polished small industries in Surat. The 21-day Diwali holiday has been extended to 30 days and even after it is over, unemployment has reached 50 percent.
It is estimated that 5 lakh people are unemployed and 2 lakh are semi-unemployed in diamond factories.
Bhavesh Tank of Gujarat Diamond Workers Association had told in November that 50 thousand artisans have become unemployed in Surat in 10 months. This has happened in 4 districts of Saurashtra. In which 1.5 lakh artisans were working in Amreli, 3.50 lakh in Bhavnagar, 2 lakh in Junagadh, Botad. Out of which 1 lakh are unemployed. 70 thousand people who went home from Surat in 1 thousand SST buses have not returned.
70,000 people were working in 1,500 diamond factories in Botad. Within 2 months, more than 40 percent of small and medium factories were closed.
42 unemployed workers committed suicide. The financial condition of the family is bad.
There are 960 factories in Amreli, out of which 30 percent factories will not restart after Diwali 2024, which will affect 42 thousand artisans.
Appealed to the government for help. But the government did not help.
5.1% growth was expected in 2023, but the industry came under crisis.
More than 30 diamond artisans have committed suicide in 5 months.
Diamond factories had to be closed for 2 months.
Diamond exports in three months fell from Rs. 77,500 crore to Rs. 60,222 crore.
The US is Gujarat’s major diamond market.
The man-made diamond market was valued at US$1 billion, which grew to US$12 billion in 2022, with a compound annual growth rate of 17% and a growth rate of 38% in the last two calendar years.
It will become $37.32 billion in 2028.
CR Patil and BJP leaders were wooing these diamond artisans for votes in the 2022 and 2024 elections. Now they neither come out nor do anything for relief. The only BJP MLA from Varachha, Kishor Kanani, has demanded relief for the diamond industry. Then they too are silent.
Stainless Steel
In January 2024, about 30-35 per cent of medium and small enterprises in Gujarat shut shops between July-September last year due to heavy import load from cheap Chinese. 80 per cent of India’s stainless steel is made in small and medium industries of Gujarat.
Out of 80 induction furnace companies in Ahmedabad, 20 companies have shut down. More than 100 re-rollers making utensils have shut down.
1800 companies closed
From April 2020 to 29 November 2021, 1,938 companies have closed their business across Gujarat. There were companies in the travel and tourism sector. Despite the closure due to Covid, the government did not provide any help.
20 paper mills closed
By June 2023, out of 100 paper mills in Gujarat, 20 mills closed within 6 months. Closed in Morbi, Ahmedabad, Surat, Vapi. Due to which 26 thousand people have become unemployed. The mills had a demand of 3 lakh metric tonnes. Production has reduced by 50 percent. Exports from Gujarat and Maharashtra were 1.50 lakh tonnes per year, which has come down to 30,000 tonnes. Export destinations were China, Middle East etc.
Each paper mill provides direct employment to 300 people and indirect employment to 1,000 people. The daily production of a mill is 150 tonnes. Paper is used for packaging material. Four mills have been shut down in Vapi in two months. Gujarat has paper mills in Vapi and Morbi. Out of 100 paper mills, 20 were in Vapi GIDC of Valsad district.
Plastic
After the ban on the use of plastic, 2000 small businesses were shut down. Employment of 50 thousand people was affected. Most of the units are from Halol, Vadodara and Waghodiya of Panchmahal district.
30 thousand units in the country produce plastic. Out of which 90% are small units. Out of which 10 thousand units are in Gujarat. About 80% of which is in the small scale industry sector which is about Rs. Its annual turnover is 10 thousandCrore rupees. The total business in the country is Rs 38,500 crore. In which a huge slowdown is being seen. 50 thousand people are directly affected by employment. (Google translation from Gujarati)
