Surat diamond industry starts sparkling again

The Rs 50,000-crore diamond industry in Surat is on its way to recovery. The growing economies in India, Middle East,Hing Kong and China are helping the sector to regain its glitter.Roughly 500 units, 40% of the 1,250 units which shut shop in the wake of the economic crisis, are back in business giving jobs to one lakh diamond workers. If September 2008 was the beginning of the crash period for the diamond industry, September 2009 has heralded a revival.

"The reopened units are working in full capacity to meet orders from domestic as well as key markets in Middle East, Hong Kong and China," said Rohit Mehta, president, Surat Diamond Association. Most of the diamantaires in Surat and Mumbai have been preparing for the Hong Kong jewellery and gem fair, Asia's biggest and one of the top three in the world, starting from September 21. Last September, the jewellery fair attracted more than 37,000 buyers from 133 countries and regions.

‘‘We are focusing on Hong Kong and India markets. The domestic demand for diamond jewellery has grown by almost 25% compared to last year, which was Rs 20,000 crore. As per the leading industry players, the domestic market for diamonds is likely to touch Rs 30,000 crore by 2012,'' said Bharat Gosai, a leading diamantaire.

As per the data from state government's labour department, of the total 2,500 units in the city, 1,250 were closed due to the global slump leaving two lakh workers jobless.

While most of the jobless workers left for their home towns in Saurashtra, a fraction of them were absorbed in the embroidery industry.