Surat (Gujarat): After Diwali, about 50% of the diamond units in the rural areas across Gujarat have not opened yet. A decrease of 15% in the jewellery business and 5% reduction in the export of polished diamonds has been noticed. The northern parts of Gujarat such as Mehsana, Bhavnagar have seen a major downfall in the diamond business after Diwali.
The main reason of this downfall in the diamond business is the fluctuation in rupees as compared to dollars and the banking frauds done by Nirav Modi and Mehul Choksi. The banks have gone stricter in their policies because of a few high profile fraudulent cases that have occurred in the country.
The small traders and businessmen are suffering due to this and have had to shut down the diamond units due to unavailability of cash flow. On the other hand, the labourers who used to earn their livelihood by working in these small firms are now unemployed.