Gujarat’s Diamond Sector Gets Relief Push, But Realities Raise Concerns

Dinesh Navadiya, chairman of Indian Diamond Institute (IDI) and former regional chairman of Gem and Jewellery Export Promotion Council (GJEPC) informed that close to 10,000 units are registered with the District Industries Centre (DIC). 

Jayanti Savalia, Chairman of GJEPC (Gujarat Region) said that the Council has allocated identity cards (i-cards) to close to 1.5 lakh workers across the country, of which about 40,000 are in Surat. This is very less compared to an estimated 10 lakh workers in Surat alone. “We are raising awareness drive to increase registration. Those with i-cards also get free Mediclaim of Rs 35,000 covering all the diseases. We have also distributed note books to children of i-card holders,” he informed.

As part of the new relief measures, diamond artisans who have been unemployed for up to one year, following a minimum of three years in the industry, are eligible for an education allowance of up to Rs 13,500 per child annually. Additionally, diamond units with capital investments up to Rs 2.5 crore in plant and machinery--and a verified 25% reduction in electricity consumption—qualify for a 9% interest subsidy on term loans up to Rs 5 lakh for a duration of three years.

The package’s announcement follows the reported suicides of 62 diamond artisans in Gujarat, mostly in Surat, over the last three years, attributed to the sector’s economic downturn. Although not part of the formal relief package, industry representatives have indicated that a survey of the affected families is under consideration. Upon completion, eligible families may receive compensation of up to Rs 4 lakh, Navadiya confirmed.

“This is the first time a relief package has been introduced specifically for diamond artisans, who are going through significant economic hardship. We informed the government about the ground realities, and Chief Minister Bhupendra Patel was receptive. MoS Harsh Sanghvi played a crucial role in getting the package rolled out. It is a promising start,” said Navadiya. He also noted that while many workers have lost jobs in the diamond sector, some have managed to shift to other industries like textiles or have started small businesses.

However, Ahmedabad-based diamond industrialist-turned-jeweller Jitubhai Moradiya warned that the relief package may not reach those most in need. “The real sufferers are the unregistered workers; they desperately need relief. The package requires workers to prove employment in the diamond sector over the past three years. It means they should be registered, which becomes a major challenge,” he said. According to him the only relief is the fee reimbursement for the children’s education. Beyond that, the support is minimal.

Meanwhile, other Industry leaders see this package as a stopgap, noting that the only way to revive the sector is to renew export demand. “USA constitutes 35% of our exports. China is another major market. Our business will grow only if there is a demand in these countries,” said Navadiya.

According to GJEPC, India’s export of gems and jewellery in FY 2024-25 stood at $258 billion, a drop of 11.72% compared to $322.83 in 2023-24. Savalia shared that the HKTDC Hong Kong International Jewellery Show in March has sparked some hope for demand to bounce back. “The JCK Las Vegas show in June will give us a better idea. We are hopeful that business sentiment will improve from then,” he said.