The city's diamond export industry observed a day's token strike on September 10 protesting the alleged harassment by sales-tax staff in Mumbai. The state government has slapped a 4 per cent sales tax on diamonds meant for export.

Criticising the state government, Deora, who is also the chairman of the parliamentary standing committee on finance, said that with 99 per cent of diamond exports being accounted by Maharashtra, earning over Rs 18,000 crore worth of foreign exchange and providing employment to two lakh workers, the state government's move has victimized the industry.

He said that neighbouring states like Gujarat and Rajasthan have done away with sales tax on diamond exports when the state government targeted the industry.

Deora warned the state government that such absurd and retrograde policies could furtherdowngrade the state's industrial status which is already been slipping downwards. He hoped that better sense will prevail and the damage to the state's economy would be rolled back.