RBI panel urges soft loans for diamond industry

A task force set up by the Reserve Bank of India to look into the issues relating to the plight of the diamond industry, has said that banks must provide concessional loans to the diamond industry. HT Correspondent reports.

A task force set up by the Reserve Bank of India to look into the issues relating to the plight of the diamond industry, has said that banks must provide concessional loans to the diamond industry. The central bank has also said that banks must facilitate debt revamp to these units. The diamond industry in the country is one of the worst affected by the global economic slowdown.

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The $2 billion diamond industry in the country employs about 2.5 million people. However several jobs have already vanished due to shrinking demand worldwide. India exports about 60 per cent of its diamonds to the US.

Representatives of the Gujarat government, state-level bankers' committee convener, banks and Small Industries Development Bank of India constituted the task force.