Gujarat Government announces relief package for recession-hit diamond industry

The Gujarat government led by chief minister Bhupendra Patel has introduced a relief package to support diamond artisans and micro-units facing global market challenges and reeling under recession. India’s cut and polished diamond exports have recorded a continuous decline over the past three financial years. Minister of state for industries, Harsh Sanghvi, announced the initiative to ease financial strain and stabilise the State’s diamond section, especially Surat’s diamond trade hub. The package will largely benefit the Surat diamond industry where 85% of the world’s roughs are processed and employs over 8 lakh diamond artisans, as reported in the Hindustan Times.

The decision comes after the government formed a high-level committee in March to look into the industry’s issues and there was a strike in late March, led by the Diamond Workers Union Gujarat (DWUG), that prompted further discussions between government and industry representatives. The package will largely benefit the Surat industry where 85% of the world’s roughs are processed and employs over 8 lakh diamond artisans. Global disruptions, including supply chain issues, declining demand, and U.S. sanctions on polished diamonds made from Russian rough stones (33% of Surat’s supply), have battered the industry, causing factory slowdowns and job losses.