Geopolitical conflict pushes diamond workers into the rough

War in Iran has disrupted global supply chains. For workers in one city in India, this means the collapse of the diamond industry they depend on.

In narrow lanes in Surat, a city on India’s west coast, the rhythmic hum of diamond-cutting machines has begun to fade. Workshops that once operated round-the-clock now fall silent by afternoon. Workers sit idle, tools in hand, waiting for raw stones that never arrive.

“I come every day, but most days there is nothing to do,” said 32-year-old Imran Sheikh, a diamond polisher who migrated from the northern state of Uttar Pradesh over a decade ago.

“Earlier, I worked 10 to 12 hours,” Sheikh said. “Now, it’s barely four.”

Surat, which processes nearly 90% of the world’s diamonds, has long been the backbone of the global luxury trade. But today, it is facing a crisis that stretches far beyond its borders. A war unfolding thousands of kilometres away in West Asia has disrupted supply chains, weakened demand and exposed the fragility of an industry that employs close to a million workers.

What appears as a geopolitical conflict on television screens is unfolding as a slow, grinding collapse of livelihoods.

“There is no rough stock coming in regularly,” said Mahesh Patel, who owns a small polishing unit employing 15 workers. “Without raw diamonds, machines stop. And when machines stop, workers suffer.”

This breakdown in supply chains has slashed working hours and incomes. According to industry estimates, workers’ earnings have dropped sharply as shifts have been cut from full days to just a few hours. The ripple effects are immediate and visible — closed shutters, empty workshops and growing uncertainty.

For workers, the crisis is not just about reduced income — it is about survival.

Subsistence wages in a luxury industry

Imran now earns less than half of what he did two years ago. “I used to make around 28,000 rupees a month [about US$293]. Now it’s barely 12,000 rupees [US$125],” he said. “Rent, food, school fees — everything has become difficult.”

Across the city, stories like his are common.

Suresh Chauhan, 27, who works in a machine-cutting unit, said he has started borrowing money to sustain his family. “We never thought we would have to take loans for daily expenses,” he said. “But now even that feels normal.”

Many workers, with limited formal education and years spent mastering a single skill, find themselves with few alternatives.

“I have been polishing diamonds since I was 15,” said Rafiq Ansari, now 40. “What else can I do? I don’t know any other work.”

Global disruptions

For some, the crisis has taken a devastating turn. Worker unions estimate that dozens of workers have died by suicide in recent years, as financial pressures mount and hope dwindles.

“There is stress in every household,” said union representative Kiran Desai. “This is no longer just an economic slowdown, it is a social crisis.”

The current downturn is not an isolated shock but part of a series of disruptions that have battered Surat’s diamond industry over the past few years.

The COVID-19 pandemic halted production and collapsed global demand. This was followed by sanctions on Russian diamonds — one of the key sources of raw stones. More recently, trade barriers and tariffs further strained exports. Now, war in West Asia has delivered yet another blow.

“Every time we try to recover, another crisis hits us,” said trader Ramesh Jain. “There is no breathing space.”

A search for alternatives

India’s diamond sector, which contributes significantly to exports and employment, is particularly vulnerable to global instability. As a luxury commodity, diamonds are often the first to be affected when consumers cut back on spending.

The result is a cascading effect: reduced orders, halted production and shrinking incomes. Even larger firms, though more resilient, are cautious. Many have slowed operations, anticipating prolonged uncertainty in global markets.

Amid the crisis, workers and businesses alike are searching for alternatives.

Some units are shifting towards lab-grown diamonds, which are cheaper and easier to source. But this transition comes with its own challenges.

“Lab-grown diamonds require more labour but pay less,” said diamond industry analyst Neha Shah. “Workers end up doing more work for lower wages.”

Others are leaving the industry altogether.

An exodus of workers

At Surat railway station, a steady stream of workers can be seen boarding trains back to their hometowns. Many are unsure if they will return.

“I am going back to my village,” said Suresh. “At least there, I won’t have to pay rent.”

Yet, even outside the diamond industry, opportunities remain scarce. Some workers have tried switching to construction or small businesses, but unstable incomes and rising costs have made survival difficult.

“There is no stability anywhere,” said Imran. “We left our villages for a better life. Now we don’t know where to go.”

What makes Surat’s crisis particularly striking is its invisibility. There are no dramatic images, no immediate destruction — only a gradual erosion of livelihoods.

“No bombs are falling here,” said Rafiq. “But this war is still destroying us.”

The story of Surat’s diamond workers is not just about economics. It is about how global conflicts, trade policies and market shifts converge to shape the lives of those at the bottom of the supply chain.

In the glittering world of diamonds, their struggles remain largely unseen. But in the quiet workshops of Surat, the cost of conflict is being counted — one lost job, reduced wage and broken family at a time.

Questions to consider:

1. What is meant by the global supply chain?

2. How can a war in one part of the world disrupt an industry in another country?

3. What did you learn reading this story that you did not know before?