PM Narendra Modi inaugurated worlds largest centre for international diamond and jewellery business - Surat Diamond Bourse

At a time when the diamond industry is going through its worst crisis due to the global economic slowdown and the G7 countries' tough stance on Russian diamonds, Prime Minister Narendra Modi opened the world's largest and most contemporary centre for international diamond and jewellery business on December 17.

With offices ranging from 300 square feet to 7,5000 square feet spread across nine interconnected 15-story towers, the SDB building is the largest office complex in the world. Its purpose is to relocate the diamond trading business from Mumbai to Surat, which is the centre of diamond cutting and polishing with thousands of factories throughout the city.

Mr Modi referred to the skyscraper as "another diamond in the city" as he inaugurated the new project. "The splendour of Surat has gained an additional gem. The enormous diamond that is being shown today has made all the highest skyscrapers in the world seem unappealing. 

"The surat diamond industry employs about 8 lakh people, and 1.5 lakh more jobs will be added with the opening of new diamond bourse," he stated. 

The Prime Minister complimented the team on the project and it was hailed as an "emblem of new India and its strength." 

Along with offices for selling cut and polished diamonds and agents handling the import of raw stones from outside markets, the SDB will open 27 retail jewellery stores to complete the diamond jewellery value chain. 

The greenfield project, which was started in 2015, was inaugurated despite significant obstacles, including the global downturn and geopolitical circumstances that have upended the diamond sector, which employs around a million people in the State. 

The G7 group of nations has proposed direct import restrictions on diamonds processed by third countries, such as India, starting in January, and on Russian-origin diamonds starting in March. This announcement has caused significant anxiety for the Surat diamond processing business as well as the Indian gem and jewellery trade.

However, the limits only apply to diamonds weighing one carat or more in the G7 nations. Beginning in September 2024, diamonds weighing half a carat or more will no longer be allowed, and a new system to track the stones' provenance will be implemented. 

According to factory owners, since Russian diamonds weighing less than 0.5 carats are cut and polished in Surat, the effects of the G7 embargo won't be too great.But in September, the Gems and Jewellery Export Promotion Council (GJEPC) and other trade associations ordered members to stop importing rough diamonds for two months starting on October 15. This was amid a sharp increase in polished diamond inventory as a result of a sharp decline in exports from China and Western nations.