Surat diamond market is also sluggish because of the rising prices of petrol products, tradewalk and dollar strength against rupee due to the prospect of different sectors. Sources say that there is a fearsome recession like 2008.
More than 500 small units have been closed in the past one and a half month in Surat and 20,000 jewelers have become unemployed. At the same time, large units have also reduced work hours and days. In addition to the strong dollar and weak demand of Christmas, the diamond challenge in the laboratory and the controls in banking finance are responsible for the recession in the diamond market.
Problems have increased for the diamond industry facing the already poor demand due to the control over banking financing in Surat's diamond market. The order for Christmas has been poor overall and the industry has demanded banking relief like the 2008 government.
The recession of the 2008 diamond market is being repeated. Many large units have stopped working for two to three days a week and have reduced working hours. About 500-1,000 small units have been closed in the past one and a half months, and more than 20,000 jewelers have become unemployed.
Rising diamond import is expensive because of the rising dollar and the demand for polished diamonds is very low, so the sale has dropped a lot. Competition has started with a lab-based diamond against Natural Diamond. It has also been adversely affecting the demand. Surat has more than 5,000 diamond units, and the diamond industry employs more than four lakh jewelers. Following the Surat diamond market, there are reports of several units being closed in Saurashtra's diamond markets.
