Yuan Depreciation and Bihar Election

At the end of 2014, China became the world’s second largest diamond consuming market. Chinese were using diamonds not only as luxury item, but also hold them as an investment. As the Chinese Yuan depreciates situation is changing dramatically, and impact of China slow down affecting world largest diamond exporting country “India”.

In 2014, the overall value of diamond exports by countries amounted to US$144.6 billion. Below are the 4 countries that exported the highest dollar value worth of diamonds during 2014:

India: $24.1 billion (16.6% of total diamond exports)

United States: $21.3 billion (14.8%)

Belgium: $20.9 billion (14.8%)

Israel: $20.5 billion (14.2%)

According to industry estimates, of every 10 diamonds sold in the world, as many as seven are polished in Surat, where the industry has an annual turnover in excess of Rs. 80,000 crore. Surat is home to over 2,500 units which generate direct employment for about 400,000 people.

Surat has the highest percentage of migrant population in India roughly 58%. Many of migrants are from Bihar, these migrants workers have seen unprecedented growth in past but the time has changed dramatically due to slow down in China , migrants workers are feeling pinch of job loss or squeezed margin in diamond industry due to slow down in China , many of them would like to come back to their home state “Bihar” once someone assure themselves of development story in their home state, for them development politics is much important than caste based politics , political parties should understand this silent message.

A migrant worker just not speak for himself/herself, but he/she brings ray of hope of for other villagers leaving in same locality too, it’s kind of spreading message without any extra effort. Last general election has already witnessed power of development politics, and we feel “development” will be center stage in upcoming Bihar election too. Right now political parties are seen toying with idea of caste based politics, but our analysis suggest development will take center stage in upcoming Bihar election.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>