Surat is well known for diamond polishing business. Around 90% of total diamonds in the world are polished in Surat.
America put sanctions on Russia. Two months ago, a group of important countries called G7 also imposed sanctions on Russian ships, airplanes, and diamonds. This caused a problem for a diamond polishing business in Surat, India. Their business went down by 35%. Annual turnover of diamond business in Surat is around 3.3 lakh crore rupees. Loss has been increased to 15 to 20 percent.
Around 10 to 15 lakh workers in Surat are facing a tough time. In the past 3 months, 10 workers even ended their lives. These workers have been doing diamond polishing for a long time, and many of them are uneducated. They can’t easily switch to other jobs. They get 6 to 30 rupees for cutting and polishing small diamonds and 600 to 1800 rupees get for large diamonds.
American citizens are not allowed to buy Russian goods commodities. Russian goods are ban in America. Therefore, even though rough diamonds are importing from Russia into India still they could not sale in USA after polishing.
Raw diamonds come from places like Russia and Africa. Many people in the USA love diamonds and use them as symbols of love. They make beautiful things like rings, necklaces, and bracelets out of diamonds.
History of diamond trading in India:
Surat, located in the state of Gujarat, India, has a rich history in diamond polishing. Diamond polishing is the process of refining and shaping rough diamonds into sparkling gems. Surat’s association with diamond polishing dates back several centuries.
Historically, Surat was a significant trading port during the Mughal era, and diamonds were brought here from various regions. However, the real growth of the diamond polishing industry in Surat started in the late 20th century.
In the 1960s and 1970s, Surat began to emerge as a major hub for diamond cutting and polishing. The city’s skilled workforce, along with its proximity to Mumbai (a major business and transportation hub), contributed to this growth. Surat provided a cost-effective and efficient environment for diamond processing.
Over the years, Surat’s diamond industry evolved and expanded. The city attracted workers from different parts of India who sought employment in diamond polishing. With the influx of skilled labor and technological advancements, Surat’s diamond industry gained international recognition for its precision and quality.
Today, Surat is one of the largest diamond cutting and polishing centers in the world. It is known for its expertise in producing high-quality polished diamonds that are sold in global markets. The industry not only provides employment opportunities for a significant number of people but also contributes significantly to the Indian economy.
However, like any industry, Surat’s diamond polishing sector has faced challenges and fluctuations due to factors such as changes in international markets, economic conditions, and geopolitical events.
In recent times, as mentioned earlier, the industry faced difficulties due to sanctions on Russian diamonds and the impact of the global diamond trade. Despite these challenges, the skilled artisans and business owners in Surat continue to play a crucial role in the global diamond industry.
Largest Office in the world for diamond trading in Surat Gujrat:
Recently, largest office of the world has been completed in Surat for diamond trading. The biggest office space in the world is in Surat, and it costs 2,700 crores rupees.
The new Surat Diamond Bourse is largest office in the world. The building is huge, even bigger than the Pentagon, and has over 7.1 million square feet of space.
“Bourse” is a French word that means a place where people trade things like stocks, currencies, or commodities. In this context, the “Surat Diamond Bourse” refers to a location where diamond professionals come together to trade and conduct business related to diamonds.
Diamond trading brings several economic benefits to regions and countries involved in the diamond industry. Here are some key economic advantages:
Employment Opportunities:
Diamond trading creates jobs across various stages of the supply chain, including mining, cutting, polishing, jewelry manufacturing, retail, and more. This provides employment to a significant number of people, from miners to skilled artisans to salespeople.
Revenue Generation:
Diamond trade contributes to the economy through export revenues. Countries that are major diamond producers can earn substantial foreign exchange by selling diamonds on the global market.
Supporting Ancillary Industries:
The diamond industry supports other sectors such as logistics, finance, and technology. This creates a multiplier effect by generating business for complementary industries.
Tourism:
Regions known for their diamond trading often attract tourists interested in exploring the industry. These tourists contribute to local economies through spending on accommodations, food, transportation, and other services.
Skill Development:
Diamond trading requires a range of skills, from mining expertise to gemological knowledge to marketing and sales. This encourages skill development and professional growth in related fields.
Value Addition:
Through cutting, polishing, and jewelry manufacturing, the value of raw diamonds increases significantly. This value addition contributes to higher profits and economic growth.
Infrastructure Development:
The diamond trade can drive infrastructure development, including improved transportation networks, trade facilities, and educational institutions to support the industry’s needs.
Tax Revenue
Governments earn tax revenue from diamond-related activities, including mining royalties, import and export taxes, and corporate taxes from diamond trading companies.
Small and Medium Enterprises (SMEs):
The diamond industry often involves small and medium enterprises, fostering entrepreneurship and economic diversification.
Global Trade:
Diamond trading enhances international trade relationships, promoting economic ties between diamond-producing and diamond-consuming nations.
Brand and Image Building:
Countries with strong diamond trading activities can build their global reputation as hubs for luxury goods and high-quality craftsmanship, which can attract international attention and investment.
It’s important to note that while diamond trading offers economic benefits, there are also social and environmental considerations, such as ethical sourcing, fair labor practices, and environmental sustainability that need to be addressed to ensure a responsible and sustainable diamond industry.
Conclusion:
Diamond industry is one of the biggest industries of India. The geopolitical factors affect this industry. War situation of Russia Ukraine already affecting the major economies of world, like that it affected diamond industry of India also. Losses are increased. The traders are doing their effort to continue the business operations in hard situations also.
- Bangladesh is burning!!
- Know truth behind the emergency in 1974!
- Know about fundamental rights as per Indian Constitution
- Climate Change drastically effects on Politics and Economy
- When Will We Emerge as a Developed Society for girls?