Surat, India’s diamond processing hub, is experiencing a significant shift as global demand for natural diamonds slows.
Renowned for processing approximately 90% of the world’s rough diamonds, the city is adapting to changing market conditions by expanding into jewellery manufacturing. This diversification reflects efforts to counteract declining diamond export figures while leveraging growing domestic and international jewellery demand.
According to India’s Gem and Jewellery Export Promotion Council (GJEPC), a number of Surat’s diamond cutting and polishing units are now engaging in jewellery manufacturing.
Vipul Shah, chairman of GJEPC, noted: “The units have gradually started doing job work in jewellery manufacturing. Jewellery demand is increasing both in India and abroad, therefore, they are trying to leverage this opportunity. In this way, the units in Surat are trying to engage workers.”
Between April and November 2024, exports of plain gold jewellery grew by 2.48%, while studded jewellery exports saw a 14.4% increase. In contrast, exports of cut and polished diamonds dropped by 19% during the same period. Around 10% of Surat’s diamond processing units have now pivoted to jewellery production, with studded jewellery being a significant area of focus.
To facilitate this diversification, the GJEPC launched a jewellery-making course roughly six months ago. This initiative aims to equip industry workers with the skills needed to meet the growing demand for jewellery manufacturing while retaining a skilled workforce in the sector.
In addition to addressing the immediate needs of jewellery production, the GJEPC continues to advocate for the natural diamond industry. It has engaged with the government to discuss financial measures that could stimulate global demand for natural diamonds.
The declining demand for cut and polished diamonds is largely attributed to global economic uncertainties, which have dampened consumer spending on luxury goods. However, the jewellery market, particularly for finished products, continues to show resilience, driven by steady demand in both domestic and international markets.
For jewellers, Surat’s diversification may present new opportunities. The increased focus on jewellery manufacturing is expected to enhance the supply of jewellery aligned with current consumer preferences. This transition also creates possibilities for sourcing products from Surat’s emerging jewellery manufacturing sector.
Surat’s strategic pivot underscores its adaptability in the face of market challenges. By complementing its traditional diamond processing expertise with jewellery manufacturing, the city is positioning itself to remain a vital contributor to the global jewellery industry. For professional jewellers, this evolution offers an opportunity to engage with a more integrated and diversified supply chain.
