Surat Diamond Company Announces 10-Day ‘Vacation’ For 50,000 Employees; Here’s Why

Surat: The world’s largest natural diamond manufacturer, Kiran Gems, has announced a 10-day ‘vacation’ for its 50,000 employees from August 17 to 27. This unprecedented move comes amid a sharp decline in global demand for polished diamonds due to a persisting economic downturn.

Chairman Vallabhbhai Lakhani attributed the decision to the current recession, citing a mismatch between the limited supply of rough diamonds and the weak market for finished products. Despite the temporary shutdown, the company has assured employees of full salary, albeit with minor deductions.

The Surat diamond industry, which processes nearly 90% of the world’s diamonds, is grappling with the fallout of the global recession. Jagdish Khunt, president of the Surat Diamond Association, echoed Lakhani’s concerns, stating that the industry’s turnover has plummeted from ₹2,25,000 crore in 2022 to approximately ₹1,50,000 crore this year.

The crisis has impacted the livelihoods of nearly 10 lakh people directly employed by the city’s 4,000 diamond processing units.

Industry experts point to geopolitical tensions, including the Russia-Ukraine war and the Israel-Palestine conflict, as contributing factors to the weakened global demand for diamonds.