A slowdown in demand for diamonds in China and West Asiais estimated to have caused a 10-15% job loss in the diamond cutting and polishing hub in Gujarat in the first four months of this fiscal year. 

Prices of polished diamonds have dropped 6-10% in the past four months due to weak demand and the industry does not foresee the demand to pick up soon. 

“Job loss to the tune of 10-15% has already happened in the diamond hub of Gujarat which is spread over Surat and smaller centres like Amreli and Bhavnagar,” Colin Shah, the vicechairman of the Gem & Jewellery Export Promotion Council, told ET. “A slowdown in global demand, coupled with liquidity crisis, has affected the trade. Though demand in the US and Europe is steady, demand has dropped by 15-20% in China which is a major market. Demand in the Gulf countries is also not encouraging.” Th ..