As the global demand for natural diamonds wanes, Surat’s diamond cutting and polishing sector is turning to jewelry manufacturing to adapt to the changing market conditions. With the demand for gemstones stabilizing, Surat's diamond processing units are embracing diversification by entering the jewelry-making industry, aiming to capture rising global jewelry demand.
Vipul Shah, Chairman of the Gem and Jewelry Export Promotion Council (GJEPC), explained that many diamond processing units have shifted their focus to jewelry production as a strategic move to capitalize on growing demand for gold and diamond-encrusted jewelry both in India and internationally. The transition is designed to sustain business and attract skilled laborers who were previously employed in diamond processing.
While the global market remains uncertain, with diamond cutting and polishing demand not expected to rise significantly in the near term, the jewelry market is seeing growth. From April to November 2024, India's polished diamond exports fell by 19%, while exports of pure gold jewelry grew by 2.48% and gem-set jewelry surged by 14.4%. As a result, approximately 10% of Surat’s diamond cutting and polishing units have ventured into jewelry manufacturing, particularly focusing on the creation of gem-set pieces.
To address the growing demand for jewelry-making skills, the GJEPC introduced a specialized training course for industry workers about six months ago. In addition, the council has been in talks with the government, advocating for financial support to help drive further growth in the natural diamond sector.