Modus operandi employed by diamond jewellery businesses to launder money involves import of cheap, synthetic diamonds that are usually overvalued by over 100 times, it is learnt.
At least eight diamond workers in Surat have died by suicide in the past three months with about 15,000 laid off while the industry's losses have increased from 1% to 15-20% annually in the last five years.
India exported lab diamonds worth $216.07 million in financial year 2017-18. The latest numbers – between April 2022 & February 2023 – stand at $1568.55 million.
Finance Minister Nirmala Sitharaman, while announcing the allocation for lab-grown diamonds in the 2023 Budget, had called it an 'emerging sector with high employment potential'.
Losing access to Russian diamonds over long term would devastate the industry, jeopardising thousands of jobs in India and hitting major trading centers across the world.
Even though exports to India make up just about 10% of Russian direct sales, Indian diamantaires fear they could end up on the frontline of the war in Ukraine.
Surat Diamond Bourse, currently under construction, is expected to open in 3 or 4 months. It is expected to house nearly 4,400 merchants and employ about 1.5 lakh people.
After dominating India’s crude imports since 2023, Russian supplies slowed amid US sanctions, but a 30-day ‘waiver’ amid West Asia tensions could now push flows back towards 2 mbpd.
Trump has ushered in the age of humiliation. His method is to push around America’s friends rudely and publicly. He knows none of them can afford to fight back.
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