Editor’s Note
This article examines the potential disruption to Surat’s diamond industry as Russian mining giant Alrosa plans its first overseas polishing facility in India. The move could reshape global supply chains and challenge established hubs.
Surat, the world’s largest diamond cutting and polishing centre, may soon face its biggest disruption in decades. Russia’s state-backed diamond miner Alrosa, one of the world’s largest rough diamond producers, has announced plans to enter India by setting up a diamond polishing facility, likely in Surat or Jaipur. The planned $50 million investment marks the miner’s first overseas expansion and signals a strategic move into downstream operations long dominated by Indian firms.
The timing is critical. The US — India’s biggest jewellery export market — has imposed a 50% tariff on Indian diamonds, citing concerns over India’s growing proximity to Russia. With geopolitical risks rising and margins shrinking, Surat’s industry, which polishes 9 out of every 10 diamonds sold globally, is watching Alrosa’s move with both caution and concern.
Alrosa’s expansion into India is significant because India is already its biggest polishing partner. By establishing its own unit, the company can directly tap into India’s expertise while tightening control over global pricing and supply mechanisms.
Industry insiders also fear that Alrosa may offer preferential access to rough diamonds for its own plant, creating an uneven playing field for independent processors in Surat. This could further strain an industry already hit hard by the US tariff shock, sluggish demand, and rising financing costs.
The US’s 50% tariff on Indian diamond imports — a move widely interpreted as pressure on India to distance itself from Russian trade — has compounded fears.
While Surat remains the global epicentre of polished diamonds, Jaipur has emerged as India’s coloured gemstone capital. Alrosa considering Jaipur reflects its strategy to diversify product lines, including bridal and luxury collections for the Indian and Asian markets.
Industry veterans argue that Alrosa’s entry could modernise India’s diamond sector with blockchain-based supply chain tools, retail partnerships, and global branding. But the immediate impact will be increased competition at a time when India’s trade security is uncertain.