Indian goldsmiths raking in the moolah

- There are an estimated 50,000 workers engaged in the local jewellery sector, of which 60 percent are Indians

It may surprise many, but Rs 5 billion goes to India annually through Indian goldsmiths working in Nepal. With dearth of domestic workforce, the local jewellery market is heavily dependent on Indian jewellery makers, employing above 30,000 Indians.

Nepal Gold and Silver Dealers Association (Negosida) says there are an estimated 50,000 workers engaged in the local jewellery sector, of which 60 percent are Indians. “Many Nepalis leave the country for foreign employment, but we are facing shortage of workers,” said Tej Ratna Shakya, president NEGOSIDA.

According to Shakya, Indian workers are hired in all major cities and they are gradually making to hilly markets such as Baglung, Nuwakot and Gorkha. Salaries of these Indian workers range from Rs 10,000 to over Rs 100,000 per month depending on their skills.

At a time when domestic workers are increasingly getting involved in trade union activities, employing Indian workers is highly advantageous for bullion businessmen. They say Indians have no political affiliation and they work for longer hours.

“Skilled Indian goldsmiths earn over Rs 100,000 per month in Nepal,” said NK Gupta, managing director of Shree Riddhi Shiddhi Jewellers. Gupta, who is also the treasurer of Nepal Gems and Jewellery Association, said they time and again asked the government to bring such workers under the tax net, but to no avail.

Although the Indian workforce is sustaining the local jewellery business, getting dependent on them also has a flip side. Gold dealers say original Nepali ornament designs are dying out as Indian workers are not competent enough to design traditional Nepali jewelleries.

“Nepali youths think there is no future in this occupation,” said Shakya. “But there is a huge scope of employment in this sector with possibilities of exporting custom and contemporary jewelleries to the international market.”

About five years ago, Negosida had taken an initiative to train local youths in jewellery works. However, the plan could not draw enough response. Nepal has been exporting silver jewelleries and utensils in the international market, but exporters have not been able to attract buyers for gold jewelleries due to lack of competent workers, new technology and government policies to boost export. “We are unable to export jewelleries, but many goldsmiths in India, who earlier worked in Nepal, are designing Nepali styles and exporting to the international market,” said Gupta.


Gold at Rs 44,925

Following the international market trend, gold price on Sunday increased to a new high of Rs 44,925 per 10 gm (Rs 52,400 per tola), up by Rs 130 per 10 gm compared to the Friday’s price of Rs 44,795 per 10 gm. The price has increased by Rs 2,660 per 10 gm since last Sunday. The precious yellow metal was traded at Rs 42,265 last Sunday. The trend of investing in gold is increasing with no sign of improvement in the financial crisis in Europe and the US. “Gold price has increased from $1,843 to $1852.10 per ounce,” said Tej Ratna Bajracharya, president of Negosida, adding that it may take around a week for correction in the gold market.