Jaipur, May 12 (PTI) Jaipur's gold jewellery market has expressed concern over Prime Minister Narendra Modi's appeal to avoid buying gold for a year with traders fearing a decline in demand for gold ornaments.

Trade stakeholders said that a fall in gold demand could threaten the livelihoods of workers and artisans employed in jewellery factories and showrooms.

Industry representatives warned that any sharp decline in gold availability or demand could directly affect employment, exports and small businesses.

"Jaipur is one of the country's major hubs for gems and jewellery and the sector supports lakhs of families through employment, handicrafts, exports, tourism and cultural traditions. A decline in demand would create challenges for them," Jaipur Chamber of Commerce and Industries secretary Ajay Kala told PTI.

He said that Rajasthan consumes around 42-45 tonnes of gold annually, much of it for weddings, traditional jewellery and gemstone-studded ornaments.

"Jaipur's jewellery industry alone provides employment to lakhs of artisans, designers, polishers, small traders and exporters," he claimed.

Kala said that the rupee's depreciation against the US dollar has already made gold imports more expensive and increased production costs for jewellers.

Also, he said, high import duties and GST have pushed up gold prices for consumers and any further weakening in demand would affect the entire trade cycle.

"Jaipur has emerged not only as a gemstone centre but also as a major exporter of gold, diamond and studded jewellery. Any reduction in gold imports could affect exports of finished jewellery and impact foreign exchange earnings," he said.

"There is a need to strike a balance between national economic interests and industry concerns. The government should differentiate between consumption-based imports and export-oriented imports, promote gold recycling and exchange schemes, extend policy support to export-driven jewellery manufacturing, and maintain stability in the import duty and taxation structure," he said.

Traders said more than two lakh traders, employees and artisans are directly and indirectly associated with Jaipur's gems and jewellery industry. They warned that prolonged sluggishness in the market would hit small artisans and labourers the hardest.

Kailash Mittal, president of Jaipur Sarafa Traders Committee, said that if the government provides tax relief on recycled gold brought to the market by consumers, it could significantly increase domestic gold availability and reduce the need for imports.

Raju Mangodivala, president of the Jewellers Association Jaipur, said that gifting gold to daughters during weddings is a long-standing tradition in India and people across income groups buy gold according to their means.

He also warned that stricter curbs on gold imports could lead to an increase in smuggling. PTI SDA DR DR

Gold jewellery demand concerns emerge as traders warn of pressure on artisans, exporters and small businesses. Gold jewellery traders in Jaipur expressed concern that a call to avoid buying gold for a year could reduce demand for ornaments and affect the wider gems and jewellery trade. Industry stakeholders linked any sustained fall in gold demand or availability to pressure on workers, artisans, small traders, exporters and showrooms, noting that Jaipur functions as a major centre for gemstones, gold jewellery manufacturing and exports. Trade representatives urged a distinction between consumption-based and export-linked imports, policy support for recycling and exchange schemes, and greater stability in the import duty and taxation structure.