Kalani Tharanga, JadeTimes Staff
D.W.G. Kalani Tharanga is a Jadetimes news reporter covering Political Blogs.
The world’s diamond polishing capital, Surat, in western India, is facing a severe downturn that has led to job losses, financial strain, and tragically, a rise in worker suicides. The industry, which processes 90% of the world’s diamonds and employs over 800,000 polishers, has been hit by declining demand, global economic slowdowns, and geopolitical conflicts. The struggles faced by workers like Nikunj Tank, who tragically died by suicide after losing his job, highlight the deep impact of this recession.
The Economic Decline and Its Human Cost
The diamond industry in India, particularly in Surat, has seen a drastic downturn. Exports of polished diamonds have plummeted from $23 billion in 2022 to a projected $12 billion in 2024. The oversupply of polished diamonds, combined with lower demand in key global markets, has caused prices to dip by up to 27%. Major international events, including the Russia Ukraine war, the Israel Gaza conflict, and post pandemic recovery struggles, have significantly impacted this once thriving industry.
Surat’s Diamond Workers’ Union estimates that over 30,000 workers have lost their jobs in the past six months alone. Sadly, 65 workers have died by suicide in the past year and a half due to unemployment and financial stress, though this figure is yet to be independently verified. Families of the victims have received little to no assistance, despite government assurances of support.
Causes and Potential for Recovery
Several factors have contributed to this crisis. India’s diamond sector relies heavily on Russian rough diamonds, which have been impacted by Western sanctions. In March, the European Union and G7 imposed fresh bans on importing Russian diamonds, affecting India’s ability to polish and export these gems. Economic slowdowns in G7 countries, along with competition from lab grown diamonds, have further compounded the problem.
However, there is hope. Some industry experts believe that the market will stabilize as rough diamond prices decrease and polished diamond prices rise. The upcoming festival season, including Diwali and Christmas, may also bring a surge in demand. Despite the current challenges, many in the industry believe that, like after the 2008 recession, the diamond industry will bounce back. As Surat diamond broker Dilip Sojitra optimistically notes, “This too shall pass.”
