ગુજરાતી
English
March 12, 2025
In Gujarat, 10 lakh diamond workers have lost their jobs, and it is estimated that 23 lakh more workers are likely to become unemployed. The diamond industry in Bhavnagar city and district, which directly employs around two lakh people, has been hit hard by a severe recession, leading to a drastic reduction in production. This is the longest recession in the 50-year history of the diamond industry, leaving diamond artisans in a dire situation.
Experts in the diamond industry state that the diamond sector has been a significant contributor to employment generation in Bhavnagar city and district. The diamond industry has kept the economy of Bhavnagar city and district thriving. The city has about two thousand trading and sorting offices in the Nirmalnagar diamond market. However, the demand for lab-grown diamonds has increased while the production of natural diamonds has decreased, which has affected Gujarat’s diamond market.
Around 50 lakh workers are involved in the diamond industry across Gujarat, and it is expected that 23 lakh workers, including 60,000 workers in Ahmedabad, could be affected. In Bhavnagar, factories are located in areas like Kumudwadi (300–400 workers), Talaja Road near Ram Mantra Mandir (250 workers), and Ghogha Jakatnaka (250 workers). Additionally, there are diamond factories in Mahuva (450 workers), Palitana (250 workers), and Gariyadharam (200 workers). Other taluka centers and major villages also have small and large diamond factories, employing an estimated two lakh people in the industry. However, over the past two and a half years, the diamond industry has been facing a slowdown, which has now evolved into a severe recession.
In the district, 10% of the diamond factories have shut down. For the remaining operating units, the working hours have been reduced, and weekends are now taken off. As a result, there has been a significant reduction in production. This is the longest recession the diamond industry has faced in the last 50 years. Due to this recession, diamond artisans’ financial conditions have worsened. As a result, diamond industry leaders have appealed to the government to take concrete steps to address the situation.
Crime in Surat’s Diamond Market: In Surat, as a result of the recession, a jobless diamond artisan was found trying to sell a pistol. The police arrested Laljibhai Parmar, a 21-year-old jobless diamond artisan, with a pistol worth ₹10,000 and three live cartridges valued at ₹300. He had bought the pistol and cartridges from Uttar Pradesh seven months ago, and after becoming jobless, he attempted to sell them in Surat. The police have registered a case and are continuing their investigation.
Factory Shutdowns: In Surat, Kiran Gems, a major diamond company, gave its diamond artisans a 10-day vacation due to a lack of work. This is the first time in Surat’s diamond industry history that workers have been given such a long leave.
Global Demand for Lab-grown Diamonds Affects Gujarat’s Diamond Industry: Lab-grown diamonds are in high demand globally, which has led to a decrease in the demand for natural diamonds. This has severely impacted the diamond artisans in Gujarat. The price of natural diamonds has decreased by around 23% over the past year, while the demand for lab-grown diamonds has increased. Today, a natural diamond worth ₹3 lakh is now valued at ₹2.2 lakh, while the price of a lab-grown diamond is only ₹25,000.
Due to a 50% drop in diamond exports to China, prices have plummeted. In 2015, the price difference between natural diamonds and lab-grown diamonds was 10%, but now the gap has widened to 90%. Diamond traders believe that if the government makes the right decisions regarding diamond exports, prices could rise again. Currently, there are about 50 lakh diamond workers in India, with 23 lakh in Gujarat and 60,000 in Ahmedabad.
Kiran Gems Announces a 10-Day Vacation: Kiran Gems, one of the world’s largest natural diamond producers, announced a 10-day vacation for its 50,000 workers due to the slowdown in demand. This announcement came during the Shravan month, as a result of increased stockpiles by diamond traders in India. Kiran Gems is also one of the largest exporters of polished diamonds and made this announcement for the period of August 18-27.
