If we are talking diamond processing (as opposed to mining)... then it makes some sense.

It seems that India needs the work.

For the last few years India has been a diamond processing hub but the drop in diamond sales and the resulting slowing of mining has had major repercussions for India's diamond boom. The diamond industry in Surat is particularly hard hit. Around 100,000 diamond cutting and polishing workers have been laid off so far. There are reports that diamond workers in Amreli and Bhavnagar have been committing suicide after losing their jobs.

India took a one-month breather from importing rough diamonds starting on November 25 to the industry to regroup. They were hoping for some good news from the U.S. holiday season retail sales which was not forthcoming. Rough imports have resumed and the industry is focusing on responsible growth. And Surat is getting a boost with the news that Martin Rapaport will open a diamond processing hub in Surat. The Rapaport group plans to create a cash market for diamonds in Surat, with sellers and buyers getting fair pricing through diamond tenders. Currently eight out of 10 diamonds in the world are polished in Surat. There's no doubt that India will continue to be a diamond processing center in the future but that's small comfort for today's workers who are struggling to survive currently.

http://sparklesmart.blogspot.com/200...

Also...

India has also long been the world's biggest center for processing uncut diamonds imported from African mines, primarily in South Africa, Botswana, Congo, and Angola.

The country is still a huge processing center for the stones but faces challenges from Chinese competition and slower growth in the U.S.

http://www.businessweek.com/globalbi...