Gems of Conflict: The Mumbai-Surat Diamond War
Mumbai and Surat diamond markets vie for supremacy amid relocation incentives and strategic moves.
The cold war between Mumbai’s Bharat Diamond Bourse (BDB) & Surat’s Surat Diamond Bourse (SDB) over being the bigger diamond trade market is on the rise. The alleged cold war started in June 2023 when SDB announced enticing incentives for diamond traders to close their offices in BDB and relocate their operations to Surat in the new office building before its opening. The Surat Diamond Bourse’s new office is the world’s largest office building. It was inaugurated by PM Modi on 17th December 2023. ISH has released a video covering the topic. Led by world’s largest natural diamond manufacturer in India - Kiran Gems, the SDB management announced a 1-year waiver of property tax, 1-year free maintenance and prominent branding at the entry gates of the new office building to those who will completely shut shop in Mumbai and shift their business Surat. BDB expressed their disappointment at these luring tactics and called it industry dividing. They even requested SDB to refrain from such gimmicks and instead prioritize the Indian diamond industry like how BDB does. Earlier, Mumbai and Surat diamond industries shared a strong interconnection and together dominated global diamond trade. Surat offers cheap & talented laborers and affordable livelihood while Mumbai has better connectivity and international clients. 90% of the world’s diamonds are cut & polished in Surat then traded & exported from Mumbai. This dispute also led diamond traders in Surat to form a separate association, namely the Surat Diamond Traders’ Association (SDTA), despite the existence of the long-standing Surat Diamond Association (SDA) established in the 1980s. But now it seems that SDB’s tactics weren’t strong enough to keep the diamond traders. Many diamond traders including Kiran Gems themselves have shifted their headquarters back to Mumbai in just 2 months of starting operations in SDB because their businesses went down. Considering this as a positive sign, BDB along with the Gems & Jewellery Export Promotion Council (GJEPC) recently announced the plans to set up India’s largest gems and jewelry park in Mahape in Navi Mumbai. According to the reports, the project will be built on a 21-acre plot and is estimated to cost ?40,000 crore. Do you think this will further increase the cold war between Surat & Mumbai? Tell us in the comments.
