Editor’s Note
This article highlights the human cost of economic downturns, focusing on a veteran diamond artisan in Gujarat forced to close his decades-old workshop. Amid nationwide festivities, his story serves as a poignant reminder of the struggles faced by skilled workers in traditional industries.
This year, while the festival of Janmashtami was being celebrated with great fanfare across the country, 58-year-old Govindbhai Dhabhi from the Ratanpar area of Surendranagar city in Gujarat sat dejected in his house. He had shut down his 30-year-old diamond cutting and polishing business because he no longer had any orders.
said Govindbhai, sitting in his friend Dheerubhai Prajapati’s unit with moist eyes.
he added.
His friend Dheerubhai, who has more than 20 diamond cutting and polishing machines (called ghantis), is now able to run only 10 of them.
says Dheerubhai.
Just as Govindbhai had to lay off 30 workers when his unit closed, similarly Dheerubhai has also had to reduce the number of his artisans from 40 to 20, and sometimes even to 10.
said Dheerubhai.
There are thousands of Govindbhai and Dheerubhai in Gujarat’s Surendranagar, Bhavnagar, Botad, and Surat districts, who are caught in the whirlpool of global turmoil.
Gujarat’s diamond cutting and polishing industry is one of the largest in the world. The state has more than 3,500 units, employing over seven lakh artisans. According to the Gem & Jewellery Export Promotion Council (GJEPC), in the financial year 2024-2025, exports of cut and polished diamonds (CPD) from India to the US alone were $4.8 billion, which is about one-third of the total CPD exports of $13.2 billion.
The impact was immediately visible after former US President Donald Trump increased import duties on Indian goods by up to 25 percent. From August 27, Trump further increased tariffs by another 25 percent, making the total tariff 50 percent, which made trade nearly impossible.
India has no diamond mines. The country imports precious stones from the international market, mainly from South Africa and other African countries as well as Ukraine.
According to GJEPC, India’s rough diamond imports were $14.26 billion in FY 2023-24, which fell sharply to $10.8 billion in 2024-25. The main reason for this was the Russia-Ukraine war, which heavily impacted imports of rough diamonds from Ukraine. If the US market remains closed for India, imports of stones will decline further.
For now, the largest body of diamond manufacturers in India, the Surat Diamond Association (SDA), hopes this crisis will end in the coming months.
said SDA President Jagdish Khunt.
SDA Vice President Jayesh M.V. Patel also expressed similar confidence, saying the organization is in touch with the central and Gujarat governments and hopes the issues will be resolved soon.
said Patel.
But this waiting game can only be played by the big players. Many large companies in Surat and Mumbai are facing losses, but due to their strong financial position, they are still holding on. Ramesh Dakharia, owner of the large Surat-based brand Royal Impex, said his company is using this period of uncertainty to build up stock.
he said.
Another big name in the diamond trade and SDA Joint Secretary, Jasmithbhai Vaghela, said he has hopes from the markets of China and Gulf countries.
he said.
An insider, on condition of anonymity, said many large diamond traders are considering forming alliances with companies in Thailand and Hong Kong.
he said.
While big players are working on new possibilities, small players are suffering heavy losses and laying off a large number of workers. The Diamond Workers Union (DWU) has refuted SDA’s claims that there have been no major layoffs in Surat.
said DWU Vice President Bhavesh Tank.
DWU is a registered union with 30,000 members across Gujarat. Tank said,