Surat Sparkles As Diamond Auctions Shift From Dubai Amid Geopolitical Tensions

Geopolitical turmoil in West Asia has disrupted diamond trade routes, particularly through Dubai, long considered a global hub. Surat, India’s “Diamond City,” is now emerging as a strong alternative, leveraging its cutting and polishing dominance and new infrastructure.

Auctions Shift To Surat

In recent weeks, four major companies conducted tendering at the Surat Diamond Bourse (SDB), a practice traditionally held in Dubai, Belgium, or Mumbai. Industry leaders believe this shift could become permanent if India provides incentives similar to Dubai’s tax and logistics advantages. 

Industry Voices

Kirit Bhansali, Chairman of the Gujarat Gem & Jewellery Export Promotion Council, confirmed that rough diamonds are now being shown in Surat instead of Dubai. Pintu Dholakia of Hare Krishna Exports called it a “golden opportunity,” noting that many buyers unable to travel to Dubai can now participate locally. 

Challenges And Opportunities

The industry has faced setbacks from COVID-19, the Russia-Ukraine war, tariff barriers, and now the Iran-US crisis. With over 6,000 cutting and polishing units employing 60,000–70,000 workers, Surat already processes 99% of the world’s diamonds. Experts say government support could cement its role as a permanent global auction hub. 

Key Highlights

•⁠  ⁠Surat Diamond Bourse hosts global diamond auctions amid West Asia tensions

•⁠  ⁠Auctions traditionally held in Dubai and Belgium now shifting to India

•⁠  ⁠Industry leaders urge government incentives to make shift permanent

•⁠  ⁠Surat processes 99% of world’s diamonds, employing 70,000 workers

•⁠  ⁠Geopolitical crises accelerate India’s chance to reclaim global trade leadership

Sources: The Financial Express, Vibes of India, Business Standard