AHMEDABAD: India’s diamond industry is facing a severe crisis, with the Gujarat Diamond Workers’ Union reporting that over 60 factory workers have taken their own lives in the past six months due to economic distress.The union emphasizes that this alarming trend highlights the dire conditions plaguing the sector, pushing many artisans to despair.A recent report reveals that the diamond industry employs more than 1.3 million individuals nationwide, with over 800,000 workers based in Surat alone.The diamond industry is currently grappling with a significant downturn, attributed to a decline in import and export activity over the past three years, driven by various global and domestic challenges. Factors such as the ongoing conflicts involving Russia-Ukraine, and Israel have severely impacted the arrival of rough diamonds in India, resulting in factory closures, defaults, and reduced working hours for workers.Global recessionDiamond market experts indicate a marked decline in demand for polished diamonds in key markets such as the United States, China and Europe. This downturn can be attributed to a combination of economic uncertainty, inflationary pressures, and escalating geopolitical tensions, all of which have tarnished the appeal of the diamond market.Additionally, the ongoing global recession has led consumers to tighten their budgets, resulting in reduced spending on luxury items, including diamonds. As a result, the once-thriving diamond industry is facing significant challenges as it navigates this complex landscape of diminished consumer confidence and shifting spending habits.“Diamond workers have been battling unemployment challenges for the past three years,” says Gujarat Diamond Workers Association vice president Bhavesh Tank.“Salaries have been reduced by 20 to 30%, and major diamond units are operating only four-five days a week,” Tank said.Rising suicide rateTank says over 60 diamond artisans have died by suicide due to financial struggles in the last six months. “Neither the government nor the industry has acknowledged these tragedies, despite the dire conditions their families are left in,” he said.Since its launch in July, the Diamond Workers Union Gujarat (DWUG) suicide helpline has received over 1,600 calls — averaging more than 50 calls a day. “This response highlights the distress within the diamond workforce,” says Tank.According to him, nearly 75% of the callers are workers who have lost their jobs, underscoring the deep financial and emotional crisis affecting the industry. “These figures are a stark reminder of the urgent need for intervention to support struggling diamond artisans,” says Tank.Cycle of debtMost diamond workers come from villages, points out Ramesh Jilria, president of the Gujarat Diamond Workers Association. “Many artisans who can’t make ends meet or secure loans in the cities have returned to their villages, hoping for better prospects,” says Jilria.“Workers end up borrowing money to pay off another debt, getting trapped in a vicious cycle,” adds Ramesh Jilria, president of the Gujarat Diamond Workers Association. Diamond artisans in larger cities are taking personal loans, often from private financiers, to cover school fees and family expenses, as banks charge prohibitive interest rates, Jilria said.The Gujarat Diamond Workers Association has called on the state government to introduce an urgent financial relief package for struggling diamond artisans.“Most suicide cases have gone unnoticed by both the government and the industry,” Tank said. “These families are left in dire conditions and need immediate assistance.”No hope of recoveryThe association has proposed the establishment of a ‘Ratnakalakar Kalyan Board’ to oversee the welfare and social security of diamond artisans across the state. “A dedicated board will ensure continuous support and policy-making for the well-being of workers, preventing future crises,” says Jilria. “We need long-term solutions.”“While the condition of the artisans may be miserable, industry owners argue they are in even worse shape,” says Naimesh Pachchigar, Gujarat president of the Indian Bullion Jewellers Association. According to Pachchigar, the global diamond industry was expected to grow by 5.1% to 7% between 2023 and ’24, but “the reality is grimmer.”The US retail market is a major driver of our industry, and any slowdown there directly impacts the diamond sector, says Pachchigar. The industry typically experiences a seasonal boom during Diwali and September, but this year has been an exception.The ongoing recession in European countries is also contributing to the slump. “America is the main market for Gujarat’s diamond industry, but given the current economic conditions in the US, it’s natural that people aren’t buying diamonds,” says Dinesh Navdiya, president of the Indian Diamond Institute and former regional chairman of the Gem & Jewellery Export Promotion Council (GJEPC).
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