Rupee is falling continuously against US dollar, Jamnagar's largest small scale industry "Brass parts industry" is taking severe hit with this fall.
As Indian rupee is hitting new lows against USD each day, brass parts industry is facing double hit, one from the rising input costs and lacking of orders due to eurozone crisis.
Jamnagar brass industry is paying more for each ton of brass scrap import, the balance of rupee-dollar is very crucial for sustainability of the business.
As USD is nearing the 55 INR sentimental milestone, many locals are worrying that this may go up to 57-58 INR. Normally Jamnagar brass industry consumes around 400 tons of brass scraps per day. This is down to 200-250 tons, with units reducing the operating hours from 8 to 5/6 hours.
Jamnagar has around 5000 units, this industry employees around 2-3 Lakh persons, and annual turn-over for this industry is 2,500 to 2,800 crore each year.