Surat: The Diamond City

How Surat Became the Backbone of India’s Diamond Industry

Surat: The Diamond City


How Surat Became the Backbone of India’s Diamond Industry  


How Surat developed over the years to become the most important city in India’s diamond industry — supporting millions of workers, businesses, and global exports.

  • Surat has become the foundation (backbone) of India’s diamond economy.

  • From a small manual polishing town to a global production powerhouse, Surat now handles the majority of diamond cutting and polishing work in India.

Surat became the backbone by combining skilled people, government support, and innovation — making it the most important city in India's diamond journey.


The Evolution of Surat’s Diamond Business

 
Surat’s diamond journey began in the early 1900s with small-scale manual polishing units.
By the 1970s–80s, the city saw rapid growth as:

  • Skilled artisans multiplied

  • Family-run businesses scaled globally

  • Technology like laser cutting and CAD was introduced

Today, Surat is responsible for over 90% of the world’s diamond cutting and polishing, making it the global capital of diamond processing.


 How It Supports Millions of Jobs


The diamond industry in Surat:

  • Employs 7–8 lakh people directly

  • Supports many more indirectly through transport, tools, packaging, training, etc.

  • Provides opportunities for migrants from across Gujarat, Rajasthan, and UP

  • Offers a ladder of growth — many workers become entrepreneurs

Entire neighborhoods in Surat exist because of the diamond ecosystem.


Government Policies & Incentives


 
The Indian and Gujarat governments have actively supported Surat’s growth through:

  • SEZs (Special Economic Zones) for exports

  • Diamond Research and Mercantile (DREAM) City – a massive diamond trading and manufacturing hub

  • Training programs for artisans and use of AI & CAD

  • New incentives for lab-grown diamonds, such as subsidies and export support

These policies have made Surat a global destination for diamond buyers and investors.


The Impact of Lab-Grown Diamonds


Surat is leading India’s lab-grown diamond revolution with:

  • Advanced CVD and HPHT manufacturing units

  • Increasing global demand due to ethical sourcing and affordability

  • Businesses shifting from mined to lab-grown due to lower costs and faster production

Lab-grown diamonds are creating new job roles, expanding exports, and attracting younger entrepreneurs.