With the tensions in West Asia still simmering, Surat diamantaires have spotted an opportunity — the prospects of moving global diamond trade right back home.

Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council India, told FE that four big companies have done tendering in the Surat Diamond Bourse in the last fortnight. Usually, the auctions are done by the mining companies in Belgium, Dubai, and Mumbai. Rough diamonds were shown at SDB. These used to be previously shown in Dubai, market experts said.

A couple of days ago, Bhansali  along with his team called on Prime Minister Narendra Modi to appraise him about the move to bring back auctioning of rough diamonds to India. Industry experts said that due to the Iran-US crisis, the tendering and auctions have moved to India and Belgium. 

What did Pintu Dholakia say?

“It is a golden opportunity, and if the Indian government gives incentives and facilities like Dubai, then this auctioning from India will become a permanent feature,” said Pintu Dholakia, CEO of Hari Krishna Exports Pvt. Ltd, one of the biggest diamond companies in the world. This, according to him, would be a win-win situation for both the auctioner and the buyer.

There are many people who are not able to go to Dubai to take part in auctioning. If they take part in the auction in Surat, then the auctioneer will get a new customer, he said.

Surat is home to over 6,000 cutting and polishing units and employs an estimated 60,000-70,000 workers. Called the “Diamond City of India”, Surat cuts and polishes 99 out of the 100 diamonds sold in the world. 

The industry has suffered one setback after another in quick succession: Covid, the  Russia-Ukraine war, tariffs barriers and now the Iran-US crisis. As Govind Dholakia, Rajya Sabha member and Founder-Chairman Emeritus of Surat-based Shree Ramkrishna Exports Pvt. Ltd, said, “There has been a slowdown in the last four years. In the last 60 years, the current phase has been the longest.” According to him, any help to the industry will be beneficial. 

Pertinently,  production of cut and polished diamonds has taken a hit and companies have stopped overproduction, factoring in projected future demands.  India’s gem and jewellery exports stood at $27 billion (around ₹2.4 lakh crore) in FY 2025–26, registering a 3.3% decline due to global economic pressures and uncertainty over tariffs, according to GJEPC India data released recently. Also, cut and polished diamonds, which make up 43.9% of total exports, declined by 8.5% year-on-year to $12.2 billion. 

While big companies have abstained from major lay-offs, there have been some reports of workers being sacked by smaller units. Bhavesh Tank, vice president of the Gujarat Diamond Workers Union, said that in the last fortnight he has received 30 complaints. He, however, admitted that diamond workers are finding alternative jobs in the lab grown diamond industry.  

The companies are also revisiting their inventory, as there is not much demand from China and the Middle East these days. Market experts said that the demand from the US for the solitaires continues for the moment. The traders are buying as per the requirements. 

In India, several stores selling real diamonds are giving up to 40% off on jewellery. “Gold prices have surged in the last few months. They are just reducing their profit margin a bit and attracting customers. This is a great way to attract buyers,” an insider said, requesting anonymity.