Govt to train jobless diamond workers for other sectors

Gandhinagar/Surat: The state govt, which is facing considerable political and social pressure due to the prolonged employment crisis in Surat's diamond cutting and polishing industry, is contemplating a reskilling scheme and stipend programme for jobless workers.
Sources close to the development stated, "We received numerous representations regarding job losses in Surat's diamond industry due to a global decline in demand for natural diamonds, attributed to an increasing preference for lab-grown diamonds."
The added, "We proposed a temporary scheme of providing a stipend to Gujarat-origin diamond workers for six months, alongside training opportunities in textile and other industries where there is substantial demand for manpower. The proposed scheme aims to reskill the workforce currently experiencing severe employment challenges."
The diamond industry has faced significant challenges due to the growing popularity of cost-effective lab-grown diamonds (LGB), G7 restrictions on Russian-mined diamonds, and sluggish market demand in the US and China. As a result, India's exports declined to $18.37 billion in 2023-24 compared to $25.48 billion in 2021-22, while imports reduced to $23 billion from $28.86 billion during the same period.
The Diamond City employs about 8 lakh workers out of the total 13 lakh workforce in the diamond sector across Gujarat and Mumbai. The declining exports and higher natural diamond prices have affected diamond artisans' livelihoods.
Artisans, who receive payment based on completed work, said that their work hours have reduced by half. The industry, which previously observed one weekly off, now implements three off days a week in numerous units, while some smaller establishments that were doing job work for larger firms ceased operations.
Various organisations, including Diamond Worker Union Gujarat, Ratnakalakar Vikas Sangh, and Surat Diamond Association, representing the industry's interests, sought the govt's assistance in recent months and several representations.
Top sources said that the govt was in the process of assessing the precise number of workers who lost jobs or are at risk of unemployment.
"The govt might offer self-employment training options for those willing to relocate from Surat within a specified timeframe," a source said. According to data from the Surat Municipal School Board, 603 students withdrew from 50 municipal schools in the Varachha area in the past month alone. They are from diamond workers' families who began returning to their native places, an official said.