About 200 Indian diamond cutting enterprises to stop work due to lack of export growth
About 200 Indian enterprises engaged in cutting natural diamonds in the city of Surat in the Indian state of Gujarat will stop work from August 18th to 28th due to the lack of growth in exports to the main markets of the United States and China, TASS reports
As informed by The Economic Times, the suspension of work will affect the factories of one of India's largest diamond cutting companies, Kiran Gems, which has an annual turnover of over $2bn. For the first time in its 39-year history, it will send 50,000 of its workers on forced leave.
Ajay Sahay, the Director General of the Federation of Indian Export Organisations (FIEO), said the main reason for the crisis in the Indian diamond industry was the introduction of restrictions by the West on Russian diamonds.
“The situation of the industry will worsen by 100 percent from September 1st, when the G7 ban on imports of diamonds from Russian rough diamonds weighing 0.5 carats and below, which India mainly consumes, will begin to take effect,” FIEO CEO said earlier.
By the way, 500 diamond processing factories closed in Gujarat in July, as a result of which up to 75 thousand people lost their jobs.
