Surat now imports 80% of India’s rough diamonds directly

Surat rough diamond importsSurat: Surat has overtaken Mumbai to become India’s largest hub for rough diamond imports, handling more than 80% of inbound volumes, marking a structural shift in trade routing driven by tax changes and improved local customs infrastructure.Long recognised as the world’s biggest diamond-cutting and polishing centre, Surat is now strengthening its position as a trading hub as well. Import data from the Gem and Jewellery Export Promotion Council (GJEPC) shows that the city directly imports over four-fifths of India’s rough diamonds.Surat already polishes about nine out of every 10 diamonds processed globally. The rise in direct imports has reduced dependence on Mumbai not only as a logistics gateway but also as the primary centre for trade documentation and customs clearance.Industry participants attribute the shift to a combination of tax reforms and operational efficiencies. Before the introduction of the Goods and Services Tax (GST), Mumbai’s octroi regime encouraged manufacturers to route rough imports through the city, where polished exports were also shipped, allowing alignment of documentation and movement of raw material and finished goods.With those frictions removed and customs handling improving in Surat, companies have increasingly moved import formalities closer to their manufacturing units.

“Earlier, the manufacturer did not require to pay octroi in Mumbai if they imported raw material and shipped the finished product after polishing. Further, now the infrastructure has also improved in Surat, helping the industry establish Surat as a key rough trade hub,” an industry expert from Mumbai said.The expansion of customs facilities at the Surat Diamond Bourse (SDB) has further eased the process. Parcels arriving at Mumbai or other international airports can now be transferred through custodians to Surat customs, where manufacturers take possession.

This has reduced reliance on Mumbai-based clearances for firms with operations concentrated in Gujarat.“Gradually, the customs infrastructure grew here and that is encouraging manufacturers to import rough directly here. Further, the SDB facilities and rough auctions are helping the city grow in rough trading; it is a step further,” said Dinesh Navadiya, chairman, Indian Diamond Institute.Import figures over the past decade reflect the swing. In 2015-16, Mumbai imported $5,211 million worth of rough diamonds, compared to Surat’s $8,629 million.

By 2017-18, Mumbai’s imports rose to $12,890 million while Surat’s declined to $5,608 million.The trend then reversed sharply. In 2022-23, Surat imported $13,038 million worth of rough diamonds against Mumbai’s $3,078 million. In 2025-26, Surat recorded imports of $8,429 million, while Mumbai’s stood at $1,960 million.Surat’s growing role is also visible in the auction market. More than 1 million carats of rough diamonds valued at around $100 million were recently put on display at the Surat Diamond Bourse, alongside auction sessions conducted by multiple firms.Traditionally, major rough diamond auctions have been held in centres such as Dubai, Antwerp or in mining countries, requiring Indian manufacturers to travel overseas to participate. Industry leaders say disruptions linked to conflict in the Middle East have accelerated the move towards hosting more auctions in Surat, reinforcing its emergence as a full-fledged trading hub.