"This is for the first time in four decades that the diamond industry is facing a severe liquidity crunch and has laid off 1,00,000 people recently," Gitanjali Group Managing Director Mehul Choksi said here.
Over 1.3 million people and their families depend on the 50-billion dollar Indian gems and jewellery industry.
Of the 50 billion-dollar industry, exports account for 20 billion dollar. The country manufactures 90 per cent of the world's diamonds as per the industry players, while Surat alone accounts for 70 per cent.
"But we are passing through a very rough phase with employment of miners and those polishing gems at risk," Federation of Indian Chamber of Commerce and Industry (FICCI) Secretary General Amit Mitra said.
OneIndia News (With inputs from Agencies)