Gujarat Diamonds & Despair

RAJYA SABHA DATA ANALYSIS HIGHLIGHTS Exports Slump: Exports experienced a steady decline, with the sharpest year-on-year fall of approximately 25.8% between 2022-23 and 2023-24 Imports Contraction: Imports decreased by nearly 15.8% reducing domestic demand or currency fluctuations Total Trade Shrinkage: The overall trade volume declined by $12.98 billion in 2 years, raising concerns about economic slowdowns or shifting global trade patterns Trade Balance Gap: Despite the reductions, the trade balance (imports exceeding exports) remains consistent, underscoring persistent trade deficits

- Dilip Singh Kshatriya @ Ahmedabad

While diamonds are often regarded as timeless treasures, the industries that create these precious gems are currently facing significant challenges. A severe recession has impacted the diamond industry in Gujarat, leading to the closure of more than 2,000 factories—approximately 50% of the total—after the Diwali vacation, according to the Gujarat Diamond Workers Association.

This year, the crisis has driven 45 gem artisans to take their own lives amid rising unemployment. The government has acknowledged in the Rajya Sabha that the diamond sector has struggled for the past three years due to declining demand in key export markets and supply chain disruptions, including G7 sanctions on diamonds of Russian origin.