Come March, Khajod bourse to add chamak to Surat diamond trade

By Gaurav Khara

Diamond traders are shifting from Mumbai to Surat as bourse will allow them to manufacture diamonds, attract international buyers, execute deals and export diamonds from one place

Eight out of 10 diamonds are manufactured in Surat, but the deals and exports happen only in Mumbai. This scenario will change by next year when diamond traders shift base from Mumbai to Surat where a world-class diamond bourse (SDB) is coming up at the Diamond Mercantile and Research (DREAM) City in Khajod.

The Surat Diamond Bourse, which is being built at a cost of Rs 2,600 crore on an area larger than the Pentagon in the US, is expected to be ready by March. Designed on the theme of Panchatattva (five elements), the bourse will have nine 11- storeyed towers in an area of 66 lakh sq ft, and accommodate 4,200 offices. The project – which was conceived by chairman of Kiran Gems Vallabh Patel many years ago -- is expected to draw to Surat the exports worth Rs 1.5 lakh crore that currently goes through Mumbai, and generate 2lakh new jobs.


Being the world’s largest diamond cutting and polishing centre, the purpose of the project is to attract buyers from across the world to Surat to plan and execute business transactions at one place. The SDB will house facilities including safe deposit vaults, museum, custom office, money transfer desks, travel desk, retail zone, auction house and a diamond club apart from other facilities.

Job, income generation

According to trade leaders, several industrialists had migrated from Surat to Mumbai for diamond trading purposes. The bourse, which is being constructed for the past two years, will draw them back from Mumbai. Dinesh Nawadia, regional chairman of Gem & Jewellery Export Promotion Council said, “The Surat I-T department generates Rs 5,000 crore to Rs 5,500 crore in tax revenue annually. Once industrialists create their base here, Surat will generate additional income tax of Rs 3,000 crore. More than 2 lakh people living in Surat as well as neighbouring towns and villages will get jobs. The world’s top diamond mining companies will trade directly with Surat. This will boost growth of Surat, the State's economic engine.” The bourse is being built in such a way that the corridors of all nine buildings are connected to each other. There is a mini plane- parking space in the corridor.

In addition to the Destination Control Lift, the bourse has parking space for 10,000 two-wheelers and 5,000 four-wheelers. The infrastructure enables anyone entering the main gate of the bourse to reach their office in just 3-4 minutes.

The bourse project and the worsening coronavirus situation in Maharashtra prompted over 70 diamond traders to shift to Surat early this year. Now that movement between states is not so restricted, another 200 firms are expected to shift from Mumbai to Surat. Many of these firms have set up their own units in Varachha.


GJEPC has also started the International Diatrade Centre at Ichhapore Gem and Jewellery Park and obtained all formal customs clearances to carry out import, trading, and reexport of diamonds. The centre has state-of-the-art grading and certification facilities. It will be able to host alarge number of global buyers.

Nawadia said, “It has become routine for firms from Mumbai to relocate to Surat. Many traders who have firms in Surat and Mumbai are likely to settle in Surat. It is possible to export diamonds directly from Surat without a bank guarantee now.”

India’s grading panel

Though the diamond industry is more than 50 years old, the grading, certification and price is decided by a US-based Israeli company called Rapaport. As a result, diamond industrialists reportedly do not get adequate rates in the international market. However GJEPC’s efforts have ensured that the certification and grading of diamonds manufactured in India will be decided by an Indian Committee from this year.