SURAT DIAMOND BOURSE

Surat, located in the Indian state of Gujarat, is known as the world’s diamond capital. Surat is one of the cleanest cities in India and is also known by several other names like “The Silk City”, “The Diamond City”, “The Green City”, etc. Surat processes almost 90% of the diamonds in the World. The Surat diamond business is also well-connected with multiple diamond centers worldwide like London, Dubai, New York, Mumbai, and the whole of Africa. Surat has left its mark of excellence in all three departments of the business- manufacturing, importing, and the export of processed diamonds. Surat produces an insignificant amount of diamonds, however, due to the availability of low-wage workers and the presence of the international market, Surat prevails in the diamond polishing industry.

SURAT DIAMOND BOURSE

The world’s largest Surat Diamond Bourse (SDB) is likely to be inaugurated by end of December 2022. It is a diamond exchange under construction as of 2020 in DREAM City Surat, Gujarat, India. The project would be India’s second diamond trading hub based in Surat Gujarat, which spreads across 35.54 acres with an availability of 66 lacks sq. ft build-up area encompassing 4000 offices for national and international traders. Prahlad S. Patel, founder of PSP Projects is building a Surat Diamond Bourse a dream complex for individuals to enjoy a magnificent work environment. PSP projects are involved in the construction of the office complex with a contract value of INR 1575 crore and a built-up area of 66 lakh sq. ft. Mangers of the Diamond Bourse says it has a total of 9 towers and is ground plus 15 stories. All the towers are connected to each other i.e if you are on the first floor of the tower, you can easily go to the first of tower-9 or any other tower. In the same way, each floor of each tower is connected to the other. Surat’s Diamond Bourse is the largest interconnected building in the world. The Surat Diamond Bourse, which is set to house 45000 diamond companies, received permission from the customs department to set up 25000 sq. ft. customs houses, which will be three times bigger than the one in Bharat Diamond Bourse (BDB), Mumbai. The SDB Diamond Bourse is not for profit organization promoted by SBD Diamond Bourse and accommodates all buyers, manufacturers, and sellers under one roof. The construction of the world’s largest office building follows the best ecological standards followed worldwide.

ROLE OF THE INDIAN ECONOMY

The objective of Surat Diamond Bourse is to develop India as a modern and sophisticated Diamond, Gem, and Jewelry market in the world. The Gems and Jewelry (G&J) sector contributes 7% to India’s GDP and employs around 5 million people. The cheaper cost of procurement of polished diamonds and gems will go a long way in boosting jewelry demand and making exporters more competitive. Surat Diamond Bourse is also estimated to provide employment opportunities to lakhs of people and generate tourism in the area, thus boosting the economy of the region. The government has reduced custom duty on cut and polished diamonds and colored gemstones from 7.5% to 5% and nil. As of February 2021, India’s gold and diamond trade contributed 7.5% to India’s GDP and 14% to India’s total merchandise export. The gem and jewelry sector is likely to employ 8.23 million persons by 2022 from 5 million in 2020. 

FUTURE OF SURAT DIAMOND HUB 

Surat is renowned for diamond processing and trading in Gujarat and would be the world’s faster-growing city in 2022-35. Surat Diamond Bourse is expected to generate additional business worth Rs 90,000 crore annually. “The SDB is different from all the diamond bourses in the world,” declares Mathur Savani, one of the exchange’s core committee members. In 2022 the market is expected to demonstrate growth higher than the pre-pandemic period and return to a historic growth pace by 2023-24. Industry players must continue to pursue operational excellence programs and invest in digital technologies, advanced marketing concepts, and diamond jewelry value propositions to prepare for potential changes in market conditions.

The global diamond market size is anticipated to reach USD 123.83 billion by 2030 expanding at a CAGR of 3% over the forecast period. The diamond industry in India is one of the top exporters worldwide. India holds 70% of the global diamond exports making it among the most lucrative and successful industries. The employment rate is huge, and this industry has witnessed a steady development of about 15% every year.

CONCLUSION 

• This is a Game changer project for Surat City and the whole diamond and jewelry industry. It is the world’s largest diamond market. It is a new job creator. SDB will be a game changer for the Indian economy.