Terrorism in India, specifically recent Mumbai terror attacks, have adversely affected Mumbai's diamond trade. In one of three coordinated blasts that took place on July 13, millions of dollars of diamonds went flying in the air in the city’s Opera House area--a diamond center and financial hub--amounting to a “rain of diamonds.” The blasts killed 18 people and injured over 100. Diamond traders were seen frantically searching for missing stones in the lanes surrounding the blast. Only a small portion of missing stones were recovered.

 

“We have asked our members to come and claim their stones.

But we still haven't taken a call on how we will distribute

the diamonds,” said a Mumbai police officer.

 

The police also asked members of the diamond merchants association to hand over diamonds they recovered from the site, to be used as legal evidence.

 

Diamonds are big business in India, primarily in the cities

of Mumbai and Surat. In 2010, India imported 150 million

carats of rough diamond and exported over $18 billion of

polished diamonds. More than sixty percent of the world’s

diamonds are processed in India, in the Opera House area of Mumbai--a bustling metropolis, home to 20 million people and 4500 diamond businesses.

 

The terrorist activity may shift diamond operations away from Mumbai and closer to safer locations such as Surat, although some say Surat is vulnerable as well, having been the target of bomb plots a few years ago.   Many traders are reluctant to move operations, however, as it would significantly increase the distance of their commute. Measures are already underway, however, to shift the operations of diamond units from the Opera House area to safer locations.

 

 “We’re fed up of the losses we keep suffering due to bomb

explosions…But what choice do we have? We can’t suddenly up

and leave a business we’ve nurtured for decades,” said a

diamond merchant.   

 The Surat Diamond Association (SDA) says it believes that

the industry has become a target for terror and has appealed

to security forces. "The diamond business is being

specifically targeted. Terrorists want to harm both

financially and by way of human lives,” said SDA president 

Dinesh Navadia.

 

Related Articles: