Surat the diamond city of India is thriving once again. The Indian diamond cutting center located in the state of Gujarat was severely affected by the global economic downturn because diamonds are luxury goods which are the worst affected during any recession. It is widely believed that the rapidly growing economies of the Middle East, China, Hong Kong and India has gone a long way in helping the diamond industry regain its glitter.
Over 500,000 diamond workers lost their jobs in 2008, but things are much better now. Many workers have also regained their jobs. Some workers are even paid better than their previous salary.
According to the Times of India, approximately 40% (500 units) out of 1250 units that closed for business due to the recession are now open. These newly opened units have employed about 100,000 workers.
According to the labour department of the state government there 2,500 units in Surat.
Bharat Gosai, a leading diamentaire told the Times if India ‘‘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,”