look news india
Surat, 07 August (HS). These days recession is looming over the diamond industry of Surat. If the situation does not improve in a few months, then a big recession like the year 2008 can come, in which a large number of diamond artisans committed suicide. This situation has arisen due to two wars in the world, fall in demand in the global market and over production of Labgrown diamonds. Currently, businessmen associated with the diamond industry of Surat are facing the challenge of staying in business by options like salary cuts of diamond artisans, mini vacations etc.
These days the employees in the diamond industry are going through a bad financial situation. They have either been sent on leave in the name of mini vacation or they have been kept on the job at a lower salary. According to the information, some big diamond entrepreneurs have announced to keep their factories closed for the next 10 days. Kiran Gems in Surat is considered to be the biggest unit of the diamond industry. It is also said to be the world's largest natural diamond manufacturing company. According to Kiran Gems Chairman Vallabhbhai Lakhani, he has declared a 10-day holiday for his 50 thousand employees. Some amount will be deducted from the salary of these employees but all the employees will be paid the salary for the said period.
Employment to 10 lakh people
There are 3200 diamond units in Surat, in which 700 are large and 2500 are small units. Around 10 lakh employees work in these diamond units. Of these, 8 lakh are diamond artisans while the rest 2 lakh are involved in administrative work. Rough diamonds are imported from foreign countries in Surat, which are exported to foreign countries after cutting and polishing. 95 percent of the prepared diamonds are exported. Out of 10 prepared diamonds in the world, 9 diamonds are prepared in Surat. 60 percent of the diamonds exported from Surat are sent to America alone.
impact of war
If we look at the diamond industry of Surat in a sporadic manner, then there has been a slowdown in the diamond industry for about 2 years. The diamond industry in Surat started getting affected after the Russia-Ukraine war. After this, the war between Israel and Hamas completed the remaining task. Apart from this, being a luxury item, its demand in the global market keeps fluctuating. Its demand has been continuously declining for the last two years. In the current environment, its demand has come down drastically. Apart from this, diamonds are now being made in the lab. Units of this technology have been established in many countries of the world including Surat. The over production of this lab grown diamond has also led to a decline in the demand of natural diamonds.
Serious claim of the association
Recently, the Diamond Worker Union had submitted a memorandum to the collector regarding the slowdown in the diamond industry of Surat and apprised him of the real situation of the industry. According to the association's claim, 60 diamond artisans have committed suicide in the last 18 months, which reflects the dreadful situation.
Commitments of companies were cancelled
Surat Diamond Association President Jagdish Khund said that export orders from foreign countries have been cancelled, they have rejected their commitments. Due to this, there is a decline in the demand for diamonds in the global world. Due to unfavourable conditions, some diamond units in Surat have shut down their units. There is a large amount of ready diamonds in the pipeline, so there is no new demand.
