Kolkata: Diamond cutting and polishing units in Surat are diversifying into jewellery manufacturing to stay afloat and tide over the current business uncertainty triggered by weak demand for natural diamonds in the global market, industry executives said. The move is also prompted by rising demand for studded and plain gold jewellery in India and overseas, they said.
“The units have gradually started doing job work in jewellery manufacturing. Jewellery demand is increasing both in India and abroad, therefore, they are trying to leverage this opportunity. In this way, the units in Surat are trying to engage workers,” said Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC).
Surat’s diamond industry currently employs about 800,000 workers. Recognising that demand for cut and polished diamonds is unlikely to revive soon, GJEPC started a jewellery-making course about six months ago.
Ramesh Zilriya, president of the Diamond Workers Union of Gujarat said, “Many workers and young youths have undertaken this course and have started jewellery making. They are mostly making studded jewellery.”
About a tenth of the 5,000 diamond cutting and polishing units in Surat have ventured into jewellery making in addition to diamond cutting and polishing.
Shah said cutting and polishing of diamonds is unlikely to generate profits for the industry as the key Chinese market is yet to open. Pandemic-induced uncertainties and the current economic downturn in China led to a realisation among consumers there that diamonds do not carry much resale value unlike gold.
“Even though the units have started manufacturing jewellery, they will still carry on with their traditional cutting and polishing activities,” he explained.
While exports of cut and polished diamonds fell by 19% during April-November 2024 from a year earlier, exports of plain gold jewellery rose 2.48% in the same period.
