NEW DELHI: Surat diamond trader Savji Dholakia has become a national icon of generosity by gifting cars to 600 of his employees for Diwali. However, not all diamond workers are as lucky.While the fairy-tale bonanza showered by Dholakia on his staff for showing loyalty to the company makes headlines, the diamond industry faces a scary reality— nearly one in five people engaged in India’s diamond industry may become jobless in the next six months. The increase in import duty on cut and polished diamonds has led to the business of recutting and redesigning shifting to competitors such as China and Thailand, according to the Gem & Jewellery Export Promotion Council.In Surat, where Dholakia is offering a bounty to his loyal workers, Diwali may not bring cheer to every diamond workers. Gujarat Diamond Workers’ Union (GDWU) organised its first protest, a dharna in Surat, a few days ago. Union members claim about 35 per cent of diamond workforce across Gujarat has been rendered jobless in the last few months.Protesting diamond workers demanded launch of Ratnadeep Kaushalya Vardhak scheme, which was announced by the state government in 2009 to uplift diamond workers. They demanded strict implementation of labour laws to protect diamond workers from exploitation by unit owners and provident fund and ESI benefits.“The diamond trade in Surat could potentially lose one lakh jobs in the next two quarters due to the increase in duty, lack of ease of doing business and the liquidity crunch. A lot of diamonds which used to come to India for recutting are now being shipped to China and Thailand,” Colin Shah, vice-chairman, Gem & Jewellery Export Promotion Council, has told ET.The government had increased the import duty on cut and polished diamonds to 7.5% from 5% on September 26 as part of its move to increase import duty on non-essential items to narrow down the current account deficit.The industry is reeling under Asian currency devaluation, slow overseas demand and a squeeze on bank credit. Imports of cut and polished diamonds fell 31.83 per cent to Rs 5,289.35 crore in the first six months of this financial year from Rs 7,759.48 crore a year ago.Sales of diamonds in the domestic market have also fallen, according to the industry. “The flood in Kerala, fewer marriage dates and overall muted market sentiment have affected offtake of diamonds in the country in the first half of 2018-19,” Shah told ET.