Surat, the world’s largest hub for diamond cutting and polishing, is facing mounting pressure as the US jewelry market contracts and lab-grown diamonds gain traction. The latest report from the Jewelers Board of Trade (JBT) reveals a 3.2% decline in US jewelry businesses, compounding the struggles of Surat’s diamond industry.
The contraction of the US market is significant, with 753 fewer retail, wholesale, and manufacturing businesses operating compared to the previous year. The fourth quarter of 2024 alone saw 158 businesses shut down, while only 90 new retailers and a limited number of wholesalers and manufacturers emerged.
This downturn spells trouble for Surat’s diamond exporters, who heavily rely on US demand. “The shrinking US jewelry sector directly affects Surat’s diamond exports. The reduced demand for polished diamonds from one of our largest markets is a serious concern,” said Rajesh Patel, a prominent Surat-based diamond exporter.
Adding to the turmoil, plummeting polished diamond prices are squeezing profits for manufacturers and traders. Meanwhile, the growing popularity of lab-grown diamonds presents another challenge, as consumers seek more affordable alternatives to natural diamonds.
As Surat’s diamond industry grapples with these obstacles, the question remains: Can the city’s once-thriving trade adapt to a rapidly changing market, or is it facing an irreversible decline?