Tuesday, November 18, 2008

U.S. Slowdown Dulls Sparkle of India's Diamond Capital

"The global capital of the diamond-polishing trade is losing its
luster. For more than two decades, this coastal city in the western
Indian state of Gujarat has been a crucial way station in the world's
diamond trade: Eight of every 10 finished diamonds in the world are
cut and polished here before export to markets such as the U.S. At its
peak three years ago, the industry generated exports of about $12
billion a year.

But while wages elsewhere in India have risen, the owners of
diamond-cutting businesses have kept a tight cap on pay, prompting an
exodus of workers for more lucrative jobs. Now the industry is bracing
for another blow, this one from the slowdown in the U.S., which as
recently as two years ago imported roughly half the diamonds finished
in Surat," according to an article in the Wall Street Journal titled
"U.S. Slowdown Dulls Sparkle of India's Diamond Capital."

Another example of how hte US slowdown is affecting various segments
of industry worldwide.

Read the full article at --

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