AHMEDABAD: Gujarat’s diamond industry is reeling under a severe recession, with over 50% of factories shutting down after the Diwali vacation, claims the Gujarat Diamond Workers Association. The crisis has claimed the lives of 45 gem artists and forced 2000 factories out of business. The diamond industry had been on the decline over the past two years due to a falling demand in key export markets and supply chain disruptions, including G7 sanctions on Russian-origin diamonds.”In Surat, the diamond hub of Gujarat, 40% of factories remain shut post-Diwali,” said Gujarat Diamond Association President Ramesh Jilaria.”Ahmedabad sees 30% closures, while cities like Rajkot, Amreli, Bhavnagar, and Botad report 50% to 60% shutdowns. An estimated 2,000 diamond factories across these regions have not reopened after Diwali, and many may remain closed,” he added. “Even in operational units, only 50% to 60% of gem artisans have resumed work.””Wages for jewellers have plummeted by up to 50%, and we estimate around 2 lakh workers could lose their jobs in the coming days. In just one year more than 45 diamond workers had committed suicide due to financial problem (from January 2024 to December 2024)” Jilaria said.
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