Gujarat govt declares ‘rare’ financial assistance package for ailing diamond industry and workers

Gujarat government officials said that the exact number of affected diamond units and workers will be clear once the application from prospective beneficiaries reach the government
| Photo Credit:
VIJAY SONEJI

In order to support an ailing diamond industry in Gujarat, the state government on Saturday declared a “rare” financial assistance package for both the diamond units and the diamond workers.

Special assistance has been declared to ensure the financial stability of the diamond units operating in Gujarat. This includes an interest subsidy on the interest of term loans of up to ₹5 lakh for a period of three years from July 1, 2025 to June 30, 2028. The diamond units will also be given a waiver in electricity duty for a year from July 1.

Diamond units that will be applicable for this assistance will be micro units having ₹2.5 crore investment in plant and machinery. Such units should be associated with the diamond industry for a period of three years from 2022-23 and should be able to cut down on energy consumption by 25 per cent or more compared to financial year 2023-24. The prospective units who wish to take advantage of the scheme should also have done their Udyam registration before March 31, 2025.

The package will be applicable to diamond workers who have lot their jobs after March 31, 2024. Such workers should have attained 21 years in age and should have been associated with the diamond industry for a minimum three years.

The package includes a special assistance to affected diamond workers who will be given a maximum of ₹13,500 for each school-going child for a year. This aid is to ensure that the education of children of the diamond workers does not get adversely impacted. This assistance will be given to the schools through the Direct Benefit Transfer (DBT).

The prospective beneficiaries will have to apply to the district authorities along with documents including a certificate from the district, the district employment or labour officials or a letter of recommendation from the Diamond Association. The workers will also have to produce proof with regard to the school fees of their children. 

Gujarat government officials said that the exact number of affected diamond units and workers will be clear once the application from prospective beneficiaries reach the government.

While the government has declared relief for micro diamond units and diamond workers, senior members from the diamond industry in Gujarat welcomed the move and described it as “rare” for the diamond industry. “This is for the first time, such a relief package is being announced for the diamond industry and the workers by the government. The industry has been passing through a lean phase for the last couple of years and the package will not only support the micro units, but also help the workers who have seen their salaries being slashed by 30-40 per cent in the last one year,” Dinesh Navadiya, chairman of Surat-based Indian Diamond Institute and former regional head of Gem and Jewellery Export Promotion Council (GJEPC).

More Like This

Published on May 24, 2025