The Impact of the War in Ukraine on India’s Diamond Industry

When Russia invaded Ukraine in February 2022, the repercussions reached far and wide, affecting unexpected places like Surat, India. As the hub of India’s diamond industry, Surat employs over 600,000 people responsible for cutting and polishing 80% of the world’s diamonds.

Already facing challenges like floods, falling demand, and stuttering exports, Surat was hit hard by the war in Ukraine. With Western sanctions on Russian diamonds, nearly a third of India’s diamond revenue was cut off, leading to a deep financial crisis.

The ban on Russian diamonds severely limited access to essential raw materials, resulting in job losses, salary cuts, and a suicide crisis among diamond polishers. Over 63 polishers have taken their own lives in Surat in the past 16 months due to financial distress.

Efforts to provide support, such as helplines and job assistance, are being made, but the diamond industry in Surat continues to struggle. Companies have reduced work hours, slashed salaries, and many workers have lost their jobs.

The Gujarat diamond workers union is urging the government for economic aid and the revival of training programs to help those impacted by the crisis.

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