Russia–Ukraine and Israel–Hamas wars has dimmed the shine of Gujarat’s diamond trade. Actually, geo-political tension has increased in the world due to the long-running war in these countries. This has led to a major decrease in the demand for diamonds cut in Gujarat. Due to the fall in demand, the diamond industry of Gujarat has got into trouble. According to the information received, the situation has become so bad that artisans in many companies have been fired from the company. At the same time, the sword of retrenchment is hanging over thousands of workers. They can be refused to come to work at any time. Let us tell you that Surat city alone provides employment to 6 lakh diamond artisans. At the same time, the rest of Gujarat provides employment to only 3 lakh artisans.
Many companies stopped work
Let us tell you that many diamond units in Surat, Gujarat, including Kiran Gems and Diamonds, the world’s largest manufacturer of natural cut diamonds, have decided to shut down operations for 10 days from August 17 to August 28. Kiran Gems currently employs more than 50,000 people, most of whom are employed in Surat. Many companies are choosing to let their workers take long holidays and others have decided to reduce working hours or reduce workdays. The reason for this is the growing unsold inventory with the companies, falling prices, Russia-Ukraine war and declining exports. Let us tell you that currently, about 3,500 diamond cutting and polishing units are operational in Surat. Many units are facing the crisis by reducing working hours.
Diamond Artisan
Giving holidays for two to three days in a week
Due to lack of work, factories in Surat are giving workers two to three days off in a week. A trader, on condition of anonymity, said that some diamond artisans are looking for employment in other areas. Seeing the situation worsening, traders have urged the Gujarat government to announce a financial relief package for diamond artisans who have lost their jobs due to recession and those who committed suicide. Surat’s diamond industry employs around 800,000 workers, which handles the cutting and polishing of 80% of the country’s rough diamonds through more than 5,000 processing units.
The crisis deepened as Russia got stuck in the war
The country used to import rough diamonds worth about Rs 80 thousand crores from Russia annually. Russian diamond imports have fallen due to the war with Ukraine. Due to this, diamond artisans in Surat are unemployed. According to an estimate, rough diamond imports in the country have fallen by 29%. If diamond imports from Russia continue to fall like this, then the situation is likely to worsen further. Let us tell you that more than three-fourths of the polished diamonds produced in the country are exported to the US, UAE and Hong Kong.
Gems and jewellery exports reach a 3-year low
The Indian gems and jewellery industry is going through a massive slowdown. According to the annual report published by the Gems and Jewellery Export Promotion Council of India (GJEPC) for FY24, the total gross exports of gems and jewellery stood at $32.02 billion (Rs 2.63 lakh crore), showing a decline of nearly 15% compared to the previous year’s figures. Gross imports also declined by nearly 14% to $22.27 billion (Rs 1.83 lakh crore) in FY24. This is a three-year low.
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