More Surat Polishing Plants Resuming Work

One of the most outstanding negative affects of the economic crisis was the closure of hundreds of polishing operations in India’s manufacturing hub Surat. The closures led to economic turmoil for the hundreds of thousands affected families involved in the industry, resulting even in suicide in a number of cases.

However, there are first signs of a turn around, according to a recent report by Business Standard. Some 500 polishing units in Surat have resumed operations in the past month, and looking to hire workers.

According to the GJEPC, about 400,000 people employed in the city’s diamond industry have lost their jobs.

“Surat had 2,500 to 3,000 diamond-cutting and polishing units operational before Diwali [October]. However, only 1,000 units were able to start operations after the vacation,” CP Vanani, president, Surat Diamond Association (SDA).

Trading in rough and polished diamonds, while at a reduced level, is starting to pickup, and prices seem to have bottomed-out. This allowed manufacturers to start looking ahead and plan commercial activity that goes beyond ensuring a steady cash flow today.