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1) Why is diamond industry in India mainly located in Gujarat and Mumbai? In the light of recent events, examine why this industry is facing crisis and what are its consequences.

Topic Factors responsible for the location of primary, secondary, and tertiary sector industries in various parts of the world (including India)

1) Why is diamond industry in India mainly located in Gujarat and Mumbai? In the light of recent events, examine why this industry is facing crisis and what are its consequences. (250 Words)

Frontline

ET

Economist

Why this question?

Two times questions on location factors was asked by UPSC in CSE Mains(2013). As diamond industry is in news since 2015 for its crisis, this can be a probable question in Mains – 2018

Key demand of the question:

First examine why diamond industry is concentrated in Gujarat and Maharashtra.  Secondly, by highlighting recent bank frauds involving diamond industry, write about crisis in the industry and its consequences on various stakeholders. 

Directive Word:

Examine– Present facts to meet demand of the question. Your opinion is not needed. 

Structure of Answer:

In the introduction, write how labour intensive this industry is and how its crisis has ripple effect on various stakeholders. You may also write a line why it’s centred in Gujarat and Maharashtra. 

In the body, in THREE Mains parts answer the question: First part for locational factors (write in points); Second part for reasons why this industry is facing crisis (here, you should give current examples. If possible categorise points such as Government Policies; Credit etc); Third part for consequences of crisis (here, also give current examples). In third part most important factor is to remember all stakeholders. 

In the conclusion, write why such industries need regulation and also conducive environment to do business.   

Tip Make sure all parts of question are addressed and highlighted properly. 

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