Surat's diamond industry, a crucial player in India's gems and jewellery exports, is facing significant challenges as it approaches the Diwali season.

The sector has seen a large number of layoffs and factory closures, affecting around 800,000 workers. This is primarily due to Western sanctions on Russian diamonds and decreased demand from key markets such as the US and China.

The Gem and Jewellery Export Promotion Council (GJEPC) has stated that the job losses and closures were unavoidable, as the supply of rough diamonds from Russia has been severely disrupted. With India processing nearly 90 percent of the world's diamonds, traders in Surat are hoping for a revival in demand during the festive period to provide much-needed relief after months of global disruptions.

The gems and jewellery sector in India contributes 10-12 percent to the country's total merchandise exports, with diamonds being the largest component. As the industry looks to the holiday season for potential recovery, stakeholders are concerned about the impact of ongoing geopolitical tensions and market fluctuations.