Because of this industry operated mainly out of Surat, India has gained recognition as the world's largest diamond and gemstone cutting center and this industry is a leading export earner for the nation. The industry here performs the major role of importing diamonds, cutting them, treating them if necessary, polishing them and then exporting the diamonds. As per ILO, diamonds in itself contribute to 85% to 88% of total export value of gems.

Surat Diamond History

The diamond industry in Surat is noted to have been established in 1901, when Gujrati diamond cutters emigrated from South Africa. They established the diamond industry in Surat, and by the 1960s and 1970s, it flourished well. By that time, Surat based diamond cutters began exporting diamonds to the United States. However while the industry was good, the workers went through bad times and owners often resorted to violence to discipline the diamond cutters. It was only after the mid 1980s that the conditions of workers improved for the better. Today the diamond cutter holds a more important position than before, and with demanding global standards, his living conditions have improved. In the year 2006, the Surat diamond industry was hit strongly by floods and establishments suffered daily losses of up to US$10 million. Many cutters also fled the city fearing disease. The industry is however slowly recovering back to normal from the incident.

Surat Diamonds Today

Surat is noted to have approximately 10,000 units which have a daily turnover of over US$ 10 million. The industry is also noted as a high employment generator and approximately 1.5 million people are noted to be employed here.

The city has its distinct diamond district comprising of areas like Varachha, Ved Road and Katargam. The area also boasts of many flyovers in its diamond district that have been constructed to ease traffic for commuters. While the industry used to operate as sweatshops in previous times, today stylish buildings have come up. Since time, the diamond industry is caste biased with diamond trade being controlled by a few wealthy families.

These families commonly have the surnames of Jhavaris, Mehtas and Shahs. On the other hand, most of the diamantaires here are the Jains. Some of the major firms of Gujarat are Bhavani gems, D Navinchandra and Co, Gitanjali, Sanghavi exports, Shree Ramkrishna Exports, Venus jewels and Vijaydemon. One of the big names in India is Gitanjali gems, which is India's largest manufacturer of diamonds. Its cutting facilities are located in Surat's special economic zones.

The Hindustan Diamond Company Limited and De Beers India facilitate the above companies. In the year 1993 India exported over $1 billion worth of diamonds, a figure that US$12,151 million in 2003-04.