Middle East tensions shift global diamond trade towards Surat

Surat | Gujarat — The ongoing tensions involving the United States, Iran and Israel have disrupted global trade routes, but for the world’s largest diamond cutting and polishing hub, Surat, the crisis is turning into a rare opportunity.

For the first time, global diamond mining and auction companies that traditionally host rough diamond tenders in Dubai are shifting their focus to Surat. The move follows special permission granted by the Central Government to the Gems and Jewellery Export Promotion Council (GJEPC) and the Surat International Diatrade Centre (SIDC) to host the 35-day India Rough Diamond Show (IRDS) from April 6 to May 10 at the Surat Diamond Bourse (SDB) in Khajod. The Central Government has waived off the GST and other charges on the rough diamonds exhibited for viewing and auction at the SIDC during the exhibition period. 

The event is expected to bring global rough diamond supply closer to India’s manufacturing base and give thousands of small and medium diamantaires direct access to international auctions without travelling overseas.

Jayanti Savaliya, Regional Chairman of GJEPC, called the initiative a milestone. “This is a first-of-its-kind initiative. The 35-day exhibition is expected to draw more than 250 MSME diamond manufacturers every week, with overall participation touching nearly 1,000 MSMEs,” he said.

Leading global auction firms, including Star Gems and Koin International, have already confirmed participation. The exhibition opened with Star Gems showcasing rough diamonds at the SIDC, with total stones worth nearly ₹1,000 crore expected to be displayed across multiple tender sessions.

The exhibiting auction firm will take back the entire rough diamond consignment to its location in the foreign country after the exhibition is over. The bidders who have won the lots of diamonds will have to pay the auction amount to the company and that the diamonds will be exported to the particular firm or company in Surat.

Dinesh Navadiya, Regional Committee Member of GJEPC Gujarat, said the goal is clear: “We want to establish Surat and the Surat Diamond Bourse as the world’s rough diamond trading hub. Small manufacturers will now be able to directly view and purchase diamonds locally with world-class auction facilities.”

Navadiya added, “The bidders will have to bid for the certain lots displayed at the exhibition. If the bidder wins  then he will have to import the rough diamonds from the company”

GJEPC Chairman Kirit Bhansali described the event as a turning point. “The global situation has created an opportunity for India to bring rough supply closer to its manufacturing ecosystem. This platform will reduce travel costs, improve ease of doing business and strengthen MSME competitiveness,” he said.

Industry leaders believe the shift could permanently reshape the global diamond supply chain. Hitesh Shah, Director of Venus Jewel, noted that India processes more than 90% of the world’s diamonds by volume, yet rough trading traditionally happens in Antwerp, Dubai and Tel Aviv. “With rising uncertainty, the focus of auctions is shifting to Surat — the actual end user of diamonds,” he said.