Gujarat’s Diamond Workers Stare At An Uncertain Tomorrow

Amid a deepening crisis, the workers are left to choice between survival in a shifting trade or building new lives from scratch. Their only hope? A timely government relief package

Gujarat’s diamond industry—centered in Surat, a key global polishing hub—is facing an acute crisis, both economically and socially. With an estimated annual turnover of $24 billion, the industry is under severe stress. In response, the state government is gearing up to roll out a comprehensive relief package, guided by a committee formed last month and chaired by the Chief Minister himself.

While the package stops short of offering direct financial aid or outlining a full-fledged diamond industry policy, it’s being designed to tackle the most pressing issues plaguing the sector.

According to a senior official from the Industries Department, the framework is being shaped based on extensive feedback from diamond associations, which have been vocal about the downturns over the last two years.

The state’s plan focuses on two main goals: helping traders traders stabilize their businesses and supporting workers—many of whom are now seeking alternative sources of income.

Today, roughly 2 million artisans are connected to Gujarat’s diamond trade. Surat alone is home to nearly a million of them. But behind these numbers is a painful reality: mounting debts and plummeting wages have have led to despair. In just the last three years, 1,866 artisans have died by suicide—60 of them in the last 15 months alone. Global factors like tariff wars and the ongoing Russia-Ukraine conflict have only intensified the distress.

In an uncanny move, thousands of Surat’s diamond workers recently took to the streets in protest—an emotional cry for help in a trade known more for quiet precision than public dissent. Bhavesh Tank, Vice President of the Surat Diamond Workers Union, didn’t mince words. He stressed on the urgency for a dedicated diamond industry policy, akin to those in place for textiles. He added that the diamond workers have been ignored. Every time there is an economic slowdown, it’s the workers who bear the brunt first. Despite repeated appeals to authorities, no lasting support has materialized.

State Industry Minister Balvantsinh Rajput acknowledged the gravity of the crisis but clarified that the relief package won’t include direct cash handouts. Instead, the focus will be on long-term solutions: skill development, easier access to bank loans, and support for self employment. “Providing financial assistance alone won’t solve the problem,” he said. “We believe in enabling workers to transition to new jobs or start small businesses to ensure long-term sustainability.”

The final shape of the relief package is being crafted by a five-member committee led by the Chief Minister. Other members include Education Minister Praful Panseriya, Minister of State for Home Harsh Sanghavi, Industry Minister Rajput, and Additional Chief Secretary M.K. Das.

But not everyone is convinced. There’s growing dissent among industry leaders, who feel thepolitical response has been more talk than action. SD Beladia, Director of JK Diamond Export in Dubai, expressed disappointment by saying that despite having strong political representation from Surat, the industry has seen little effective action. He called on the government to offer meaningful relief to both traders and workers, stating that industry associations often receive nothing beyond verbal assurances.

Meanwhile, a recent controversial remark by Rajya Sabha MP and diamond tycoon Govind Dholakia sparked backlash. In what is being perceived as an insensitive advice, he asked the workers to “eat one meal instead of two, but never take loans.” While possibly intended to discourage indebtedness and prevent suicides, critics opine that instead of offering tone-deaf advice, Dholakia should have used his influence to push for government aid to workers.

Demands of Diamond Workers to the Government:

  •  Launch the Ratnadeep Yojana (Gemlight Scheme)
  •  Provide a financial support package
  •  Increase wages in accordance with inflation
  •  Enforce labor laws within the diamond industry
  •  Abolish the professional tax
  •  Establish a dedicated labor welfare board
  •  Draft a diamond industry policy on par with the textile sector
  • Offer financial compensation to families of suicide victims

As Gujarat prepares to unveil its relief package, diamond workers find themselves at a crossroads—either adapt to new ways of livelihood, or keep pushing for stability in an industry that no longer offers the security it once did.

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