New Delhi: Located in Gujarat, Surat the city which is also known as ‘The diamond city’ has been very successful in creating a worldwide identity for the diamond business. However, the Russia-Ukraine War is hindering the industry which is responsible for the world’s 85 per cent rough diamond needs.
As the global demand for diamonds increases, the export of precious crystals is being badly affected.
Poorly affected SEZ
Surat Special Economic Zone (Surar SEZ) has witnessed a major drop of about 65 per cent in the export of jewellery during the first four months of the current financial year. As per the data provided by the government, exports were worth Rs 3, 173 crore this financial year.
In comparison to the same period last year, the export was Rs 9,064 crore. At present, around 100 units have been closed in Surat SEZ.
Additional Director General, Foreign Trade and Developer, Surat SEZ Region, Virendra Singh says, “The decline in the exports has been mainly due to the overall decline in the demand for diamonds from US and European countries. In the first three months from April to June, the exports were down by more than 70%.”
Avoidance of Surat’s diamond
Dinesh Navadiya from Surat has to say that the demand for jewellery and diamonds is decreasing rapidly. The decline has been recorded majorly in the United States, Hong Kong and China. Countries including America and Europe are also neglecting from buying things from Russia. A quarter of rough diamonds comes to Surat through Arrosa, a Russian company.
Because of the Russia-Ukraine war, Surat’s business is being badly affected. The contribution of Gems and Diamonds in India’s total exports is Rs 3 lakh crore.
(Written by- Mahek Nigam)
