Surat Economic Package Refused: You Earned Enough, Now Give Back

Hopes that Surat’s diamond industry would get an economic relief package were dashed this weekend when Narendra Modi, Chief Minister of the Indian state of Gujarat, instead offered a cold shoulder, if not to say a cold shower. He told local diamond manufacturers, “You have earned enough, now give it back to your people.”

The harsh words, quoted by the Economic Times daily newspaper, were reportedly said during the opening of ‘Sparkle’, a three day jewelry and diamond symposium.

The Indian diamond industry is suffering from the global economic fallout of the past few months, especially hurt by low sales during the holiday season, the industry’s most important earning period of the year.

Gujarat accounts for nearly 80 percent of India’s diamond manufacturing. According to Gem & Jewellery Export Promotion Council (GJEPC) estimates, nearly 65,000 jobs have been lost due to the crisis.

Last week, expectations were high that the government of Gujarat would announce a special package to assist local diamond firms. The requested assistance included a 10 percent credit subsidy on capital investment and financial support for setting up a gems and jewelry park.

Calling diamond firms “prosperous,” Modi said that affected workers would receive aid directly. “It is upon the industry to get out of the trouble by modernizing itself and add value to its products.”

He further criticized the aid request, accusing “insensitive diamond industrialists” for getting the industry into trouble by investing in real estate instead of in the diamond industry.