Surat Diamond Giant Declares 10-Day Vacation Amid Recession

Kiran Gems, the leading diamond manufacturer, announced a 10-day vacation for its 50,000 employees due to reduced demand for polished diamonds. The recession, exacerbated by global conflicts, has significantly impacted the industry. The Surat Diamond Association confirmed the downfall, reflecting in a considerable dip in industry turnover.

Kiran Gems, a major diamond manufacturing firm based in Surat, announced a 10-day break for its 50,000 employees from August 17 to 27, citing reduced demand for polished diamonds in international markets due to recession.

On its website, Kiran Gems claims to be the world's largest manufacturer of natural diamonds. Company chairman Vallabhbhai Lakhani stated, "We have announced a 10-day vacation for our 50,000 employees. Though we will deduct some amount, all employees will be paid a salary for this period. We are forced to announce this vacation because of the recession. I am tired of this recession now."

Lakhani emphasized the short supply of rough diamonds and insufficient demand for polished diamonds as the prime reasons. He added, "Other players are also affected by this fall in demand but they are silent. We declared this proactively because we want people to know reality. This vacation for employees will help rationalize our production. No one knows the exact reasons behind this recession."

Jagdish Khunt, president of the Surat Diamond Association, echoed Lakhani's concerns, stating that the local diamond industry, which processes nearly 90% of the world's diamonds, has been significantly hit by the recession. Khunt highlighted that the Russia-Ukraine war and Israel-Palestine conflict might have contributed to the global decline in demand. He pointed out that the industry's turnover, which was nearly Rs 2,25,000 crore in 2022, has dwindled to approximately Rs 1,50,000 crore over the past two years, impacting nearly 10 lakh people employed across 4,000 diamond units in Surat.