War in Ukraine leads to crisis in Indian diamond industry - DW.

As a result of the war in Ukraine, which has been ongoing since February 2022, in the city of Surat, India, a global center for the diamond industry, unforeseen consequences have occurred. Sanctions imposed by the West against Russia, including a ban on the import of Russian diamonds, have led to a serious financial crisis in India. The country has lost almost a third of its diamond sales revenue. This was reported by Deutsche Welle.

Consequences for diamond industry workers

Over the past 16 months, there have been at least 63 suicides among diamond cutters in Surat. Several of them left suicide notes blaming the difficult financial situation. Many thousands of professionals have lost their jobs or experienced significant salary cuts.

Trade union demands

The Gujarat diamond industry workers union has set up a helpline for suicides and received over 1600 calls requesting help. The union is calling on the state government to provide financial support and revive the 'Ratandeep Yojana' educational program, which was launched during the 2008-2009 economic crisis.

Impact on exports and stockpiles

Diamond exports from India in the 2023-2024 financial year fell by 27.6%. This has led to an accumulation of stockpiles exceeding normal levels threefold. Some companies have reduced working hours and the number of hours per day to save costs, leading to a 30-40% reduction in employee salaries.

The situation in Surat is difficult. The union and government do not have full information on the number of unemployed in the diamond industry. Those who keep their jobs face potential salary cuts. The future of the diamond industry in the city is uncertain, and industry workers are hoping for government assistance and market recovery.

It is worth noting that Ukrainian President Volodymyr Zelensky has revealed his conversation with Indian Prime Minister Narendra Modi regarding India's peace plan.