Congress Warns of Protests in Gujarat Over Diamond Industry Recession Amid G7 Curbs
© AP Photo / Alastair Grant
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The G7 curbs on diamonds has triggered a political issue in the Indian state of Gujarat, with the opposition Congress demanding an extensive relief package for around two million workers.
Amit Chavda, leader of the opposition Congress party in the Gujarat state assembly, warned on Thursday that he would lead mass protests in the state if the Bharatiya Janata Party (BJP)-led state government doesn’t fulfil the demands of around two million Indian diamond artisans affected by curbs on Russian diamond imports due to restrictions by the G7.
“There has been a loss of employment in the industry due to the Ukraine conflict. The Diwali season is round the corner, but many diamond artisans don’t have enough work. The workshops are operating for fewer days a week. Around 30 workers have committed suicide in Surat alone,” Chavda told Sputnik India.
He added that the ongoing Israel-Hamas War in the Middle-East has further affected the Indian industry, given that Israel has also acted as a trading hub for Indian diamond merchants.
The Congress’ leader of opposition said that he has held extensive consultations with the diamond workers in Surat, a global diamond processing and trading hub, as well as Ahmedabad in recent days.
The Congress’ leader of opposition said that he has held extensive consultations with the diamond workers in Surat, a global diamond processing and trading hub, as well as Ahmedabad in recent days.
विश्व मे गुजरात की विशिष्ट पहचान समान डायमंड उद्योग और रत्न कलाकार आर्थिक मंदी का भोग बन रहे है, उनके प्रश्नों और वेदना को समझने और उजागर करने अहमदाबाद के रत्न कलाकारों से मुलाकात और विस्तृत चर्चा। pic.twitter.com/0sAyYXz7LS
— Amit Chavda (@AmitChavdaINC) October 18, 2023
(Translation from Gujarati: The globally-renowned diamond industry of Gujarat has been grappling with recession-like conditions. I met with workers in Ahmedabad to understand their situation).
“I have even written to Gujarat chief minister Bhupendra Patel demanding an economic relief package for diamond industry workers and the introduction of a ‘Ratnadeep Yojana’ (a reskilling scheme for laid off workers). There should also be abolition of business tax levied on the jewellers of the Surat diamond industry,” Chavda highlighted.
He further outlined that he also backs the demand to create a “Jewellers Welfare Board” as well as providing financial assistance to workers who have committed suicide.
“Besides hitting the streets if these demands aren’t met, we will also raise the issue in the upcoming Winter Session of the State Assembly,” Chavda stated.
“The Prime Minister should personally look into these demands, since he hails from the state and understands the importance of the diamond industry for the state and national economy,” he added.
As reported by Sputnik India previously, Prime Minister Modi personally took the matter of the Indian diamond industry with his G7 counterparts at the Hiroshima Summit this year.
As reported by Sputnik India previously, Prime Minister Modi personally took the matter of the Indian diamond industry with his G7 counterparts at the Hiroshima Summit this year.
Indian workers examine diamond stones at a diamond cutting and polishing workshop in Ahmedabad on July 23, 2019. India is the world's largest cutting and polishing centre for diamonds.
© AFP 2023 SAM PANTHAKY
‘Diamond Industry Affected due to Financial Constraints’
During his interactions with the diamond industry workers in the state, Chavda has heard that the state’s once-booming diamond industry has been affected due to the western sanctions against major Russian banks.
“Due to these restrictions, there has been a difficulty in paying for the orders of raw materials (rough diamonds) from Russia. Most of the rough diamonds have traditionally been imported from Russia, Belgium and African nations,” the Congress legislator stated.
He said that the growing prevalence of "lab-manufactured diamonds" in the market was also fuelling the recession in the diamond industry.
Before the Ukraine crisis erupted last February, around 90 percent of the global diamonds were cut and polished in Gujarat, primarily the city of Surat. The processed diamonds were then exported to other countries, including the US.
A G7 delegation which visited Gujarat last month cautioned the Indian industry in dealing in Russian-origin diamonds, which the western countries say that they won’t accept anymore.
28 September 2023, 19:27
