Editor’s Note
This article highlights the severe human toll of the global economic downturn on Surat’s diamond industry, a sector facing its deepest crisis in half a century. Beyond the stark figures of job losses and wage cuts, it underscores a tragic rise in worker suicides, pointing to the profound social impact of the recession.
Due to declining global demand, the diamond industry in Surat, India, is facing its worst economic recession in 50 years, leading to 200,000 workers losing their jobs. The recession has resulted in wage cuts of up to 50% for workers in the diamond industry, contributing to a rise in worker suicides.
According to Indian media reports, the diamond industry employs approximately 170,000 people in Surat and other parts of Gujarat. In Surat alone, 1.1 million workers rely on processing rough diamonds for their livelihood.
However, the ongoing crisis has led to the closure of 90% of small diamond factories, leaving over 200,000 workers unemployed. Wages for workers in factories that are still operational have fallen by 20% to 50%.
The Gujarat Diamond Workers Union (DWUG) reports that financial strain has triggered a mental health crisis among workers. In the past year, 45 diamond workers in Surat have died by suicide, and the union’s helpline has received over 3,000 distress calls from workers seeking help.
Dinesh Navadia, Chairman of the Indian Diamond Institute (IDI), emphasized the urgent need for government intervention in the diamond industry.
Diamond and jewelry exports from Surat fell by nearly half in the 2023-24 fiscal year. Overseas sales dropped to 13.747 billion rupees (USD 165 million) from 26.513 billion rupees (USD 318 million) in 2022-23, a decline of 48%.