Editor’s Note
This article explores a potential migration trend within India’s diamond industry, driven by improved rural infrastructure. As Surat’s stakeholders consider a return to villages, we examine the implications for the traditional hubs of this global trade.
A significant shift is beginning to stir in Surat, the ‘Diamond City’ that cuts and polishes 90% of the world’s diamonds. In light of improved irrigation facilities and better electricity infrastructure, stakeholders in the diamond industry are now considering a migration from cities back to villages. The Surat Diamond Association (SDA), the largest body representing the diamond cutting and polishing industry in India, has urged the government to focus on establishing diamond clusters in the rural parts of the state.
The Surat Diamond Association has submitted a memorandum to Gujarat Chief Minister Bhupendra Patel. It requests the inclusion of schemes in the upcoming annual budget to promote diamond polishing units in taluka and semi-rural areas. The association believes that with the right policies, migration to cities can be curbed, leading to balanced development across Surat and other parts of the state. Currently, around 800,000 diamond workers are employed in Surat, while cities like Ahmedabad, Bhavnagar, Navsari, Botad, and Amreli also have a large number of people connected to this industry.
According to SDA President Jagdish Khunt, rural areas previously had very limited employment options due to drought and poor infrastructure. However, better irrigation facilities now allow farmers to grow crops year-round.
he said.
The diamond industry has sought specific support from the government to start polishing units in rural areas. This includes good internet connectivity and local infrastructure, training and skill development centers for diamond workers, affordable electricity and subsidies for polishing units, tax benefits, and faster approval of proposals.
However, there are some challenges on this path. Dinesh Navadia, Chairman of the Indian Diamond Institute and a member of the SDA committee, pointed out that if units open in rural areas, sourcing high-value rough diamonds could be a concern. According to him, at the current level, it is more feasible to perform basic work on lower-quality rough diamonds in rural regions.
The association hopes that with government support, developing manufacturing hubs at the taluka level will not only reduce the burden on cities but also provide new strength to the rural economy.