Surat Diamond Bourse Struggles Without International Air Connectivity

Surat : The Surat Diamond Bourse (SDB), hailed as the world’s largest state-of-the-art diamond trading hub, faces a major setback in its ambition to rival the Bharat Diamond Bourse (BDB) in Mumbai. The lack of international air connectivity from Surat airport has hindered the aspirations of Surat diamantaires, who envisioned the bourse as an alternative to Mumbai’s diamond trading hub.

Surat airport currently offers only three days a week of international air connectivity to Sharjah, with a remarkable 98% passenger load. However, the Central Government has yet to include Surat in bilateral agreements with foreign airlines operating in prominent destinations such as Dubai, Belgium, London, and New York. This exclusion has deterred foreign airlines from establishing routes to the diamond city, despite the immense potential for passenger traffic and valuable cargo destined for foreign countries.

The SDB project located in the Diamond Research and Mercantile (DREAM) City in Khajod, some 10 kilometers away from Surat, boasts of about 4,200 diamond offices. The SDB diamond committee spearheaded by the chairman of Kiran Gems, Vallabh Lakhani, predicted the annual turnover of $2.5 billion once the bourse is operational at its optimum capacity.

Unlike Bharat Diamond Bourse (BDB) in Mumbai, SDB boasts of the state-of-the-art Customs clearance house, exclusive meant for diamonds spread on 1 lakh square feet area. The SDB also boasts of a jewellery mall having presence of some of the world’s renowned jewellery brands.

We Work for Working Airport at Surat (WWWAS), an advocacy group, has long been advocating for Surat’s inclusion in bilateral agreements to enable foreign airlines to operate from the city. The demand for international flights remains unmet, as Indian airline companies lack sufficient aircraft to support international services, resulting in a significant gap between demand and supply.

According to WWWAS, the success of SDB project hinges on international air connectivity. The majority of diamonds cut and polished in Surat are exported to prominent global markets such as Dubai, Antwerp, the USA, and Hong Kong. However, the absence of domestic air connectivity between Surat and Mumbai restricts the ability of buyers to visit Surat.

This limitation severely undermines the purpose of establishing the SDB, which carries a hefty price tag of Rs 3,000 crore. Without international air connectivity, the bourse’s potential is compromised, leaving diamantaires and buyers disappointed.

The much-anticipated inauguration of the Surat Diamond Bourse awaits Prime Minister Narendra Modi’s presence. However, a significant portion of diamantaires is disheartened by the current state of affairs at Surat airport and its lack of international air connectivity.

“The absence of international flights not only impacts the diamond trade but also hampers Surat’s aspiration to establish itself as a global diamond trading hub”said Sanjay Jain, member of WWWAS. “The Surat Diamond Bourse’s potential can only be fully realized with improved air connectivity, allowing seamless access for industry stakeholders and facilitating the growth of Surat’s diamond industry on the international stage.”

The Surat diamond industry and its advocates continue to urge the Central Government to address the pressing need for international air connectivity, emphasizing the significant impact it would have on the success and reputation of the Surat Diamond Bourse.

The Surat diamond industry is a crucial pillar of the city’s economy, generating employment and contributing significantly to India’s diamond exports. With its state-of-the-art infrastructure and modern facilities, the Surat Diamond Bourse has the potential to attract global buyers and strengthen Surat’s position as a leading diamond trading center.

The lack of international air connectivity not only hampers the growth of the diamond industry but also has broader implications for Surat’s overall economic development. The absence of direct flights to key international destinations limits the city’s access to global markets, hindering trade and investment opportunities.

The potential benefits of international air connectivity extend beyond the diamond industry. Surat is home to a vibrant textile sector and emerging industries such as information technology and renewable energy. Improved air connectivity would attract investors, foster business collaborations, and facilitate the exchange of ideas, propelling Surat’s overall economic growth.