Diamonds are for Never: the Impact of the Economic Crisis and Coping Mechanism in the Diamond Polishing Industry in India

The current economic crisis took the entire world by storm. The crisis which began in the urban jungles of the developed world trickled to the dusty villages of the developing world. Millions were rendered unemployed across the globe. This research looks at the case study of the diamond industry in India and studies the impact of the crisis on labour and the coping mechanism employed by people to combat the hardships imposed by the crisis. In the absence of social security, the labourers are forced to employ different means for survival. This research analyses the basis for various coping mechanisms and the manner in which they are used by different sections of the population. Relevance to Development Studies Globalisation lies at the centre of the current economic crisis. It took experts by surprise in the expansive impact it had across the globe. This research looks at the impact of the diamond industry and treats it as an example of export related industries in the developing world. It explores the how the industry was crippled by the fall in demand for the product, and subsequent large scale unemployment, the absence of state intervention and other channels of assistance and the mechanisms of coping employed by the workers to ensure survival. The relevance of this research lies in the fact that the analysis is temporal. It also reflects on policy suggestions for greater social security for the large informal sector in India so as to shield them from shocks of a possible crisis in the future.