Diamond industry in Surat is facing stagnation due to a shortage of diamond imports

The impact of the Israel-US war on Iran, that is ongoing in West Asia, has affected the Indian diamond industry dramatically. Rough diamonds, mostly imported from Israel and Dubai, normally arrived for polishing in Surat, Bhavnagar, Junagadh, Amreli, Botad, and other districts of Gujarat. But now, the war has cast a shadow on the Gujarat-based industry’s lustre. Indian Industrialists associated with the diamond industry have expressed concerns and expect the industry to face a recession if the war continues for a long time.

The diamond market in Junagadh’s Ambawadi employs around 8,000 diamond workers year-round. Gujarat receives approximately US$ 122 million in diamond trade from Dubai each year. Dubai and Israel also export rough diamonds to India. Diamonds polished in India are exported to other countries via Dubai. The United States is the largest diamond market. But, if the war continues for a long time, there could be significant losses in imports and exports, potentially costing Gujarat’s diamond industry Rs 2,000-3,000 crore.