Diamond Industry in India (Bharat Diamond Bourse)
As of February 2021, the gold and diamond industry contributed 75% to India's GDP and 14% to India's total Merchandise exports. The Bharat Diamond Bourse is the world's largest producer of gems and jewels, in which the US was the largest country (at 44%) to import gems and jewels worth 938.54 Million USD from India.
India's biggest export market of gems and jewels had a very major impact due to the outbreak of the COVID, so the exports had a serious damage and might take a month or two to discover. Hong Kong, which used to import 35% of gems and jewels from India had almost slumped to 23% in nine months. India is the world's largest exporter of cut and polished diamonds, where Surat is the hub which exports almost 85% of the stones. Due to the outbreak of COVID, the export was literally went down to 17.14%. The number of workers in the Surat Diamond exports had fallen short where at first they were 6,00,000 workers but after the COVID outbreak the number has decreased to 4,75,000 workers. The main reason for the decrease in the number of workers is that the workers' Union alleged that the wages for the lockdown period had not been paid which resulted in 20% of workers to leave the City. The Surat diamond industry precise turnover was 1,45,000 Crores but due to the shortage of workers it had lost almost 30,000 Crores.
As result, 70% of diamond companies in Mumbai have been shifted to Surat to overcome the loss faced and to increase the export percentage. The Indian diamond industry claims that it would repel its loss within a short period of time. It would be completely steady and ready within the arrival of 2022.
The diamond industry, which serves as the main base to India's Economy, has now decreased the standards of Exporting and a gradual decrease in its financial position. We believe that within the arrival of 2022, there would be extravagant labour in the upcoming days and would double their export status, gradually increasing the GDP of the Indian Economy.
- by : Karthik Kumar V (BBA)