As the 50 per cent US tariffs on the Indian imports came into effect on Wednesday, the stakeholders of the diamond industry in Surat believe that the market will be affected due to US' decision only for a short period of time as India controls 90% of diamond production.
Bankers and couriers to almost the entire diamond industry, which swear by their superiority to India Post or any other courier service.
Surat Diamond Association, the apex body of diamond industry in Ahmedabad, has said there should be a special force for the security of diamond industry in the wake of serial blasts in Mumbai.
Surat, which polishes almost more than 95 per cent of the world's diamonds, is poised to become the assorting and trading hub for the precious jewel stone in the next 3-4 years.
Diamond Polishers' Association (DPA), a representative body of diamond workers in the industry in Gujarat has demanded a hike in wages to the tune of about 35 per cent.
Various diamond cutting and polishing units in Gujarat have decided to work five days a week till January next year to weather the global slowdown, a member of Surat Diamond Association said.
Bharatiya Janata Party's prime ministerial candidate, Narendra Modi, last month urged small traders to compete with foreign retail chains through e-commerce.
The sector employs around 1 million skilled and unskilled workers directly and indirectly and decline in exports is a major worry for participants in the value chain.
The industry alleges the government has been apathetic, despite their pleas for quick action. However, H2 may be different as The US-China trade war had opened a window for Indian exporters to ship more to America.
Gitanjali Gems and Firestar Diamonds together account for 5.8 per cent of the diamond and jewellery trade in India.
The impact of GST is particularly stark in the highly fragmented synthetic textile industry, which attracts different GST rates at different stages of production and sale
Since most banks have tightened lending to diamond merchants and others are about to do so, many medium and small diamond dealers are approaching large players for credit facility within the industry
While gem and jewellery exports have slowed in recent months, the escalating dollar value has put diamantaires in a problem on payments against import of rough diamonds.
The proposed exchange is likely to be almost as big as Mumbai's Bharat Diamond Bourse, now said to be fully occupied.
Recent defaults have made a section of traders contemplate moving towards promissory notes.
For the last few days, Surat-based diamond exporter Savji Dholakia has been inundated with job applications.
Diamond exporters are considering stopping the import of rough diamonds.
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