Is world's largest diamond trading hub facing decline? CEO answers
The Surat Diamond Bourse (SDB), touted as the world's largest diamond trading hub, has experienced a slower start than anticipated due to challenging market conditions. This information was revealed by the not-for-profit organization's CEO Mahesh Gadhvi, who also addressed recent allegations from the Congress Party. The party claimed that only eight firms are currently operational at SDB, nearly nine months after its inauguration in December 2023.
Gadhvi responds to allegations about SDB's slow start
In response to the allegations, Gadhvi clarified that many companies at SDB are operating only a few days per week due to the ongoing downturn in the diamond industry. He stated, "From July 7, around 250 offices of the total 4,500 have been inaugurated and steadily we are progressing toward opening more offices and starting more businesses from SDB." The CEO also projected that an additional 30-40 traders would begin operations by Dussehra next month.
SDB's facilities and future plans amid market challenges
Gadhvi confirmed that all essential facilities, including a fully functional Customs clearing house, are now in place at SDB. The only remaining work is related to internal office furniture. He also refuted claims about inadequate facilities at the bourse, which is situated 30km from Surat city. Gadhvi stated that the Surat Municipality is providing hourly bus services for easy transportation to the area and emphasized that "the infrastructure and facilities are 100% complete."
India's diamond industry faces global market challenges
India, a dominant player in the global diamond cutting and polishing industry, processes over 90-95% of the world's polished diamonds. The US and China are the leading consumers of these diamonds, accounting for approximately 65% of India's diamond exports. However, economic conditions in these countries, along with rising demand for lab-grown diamonds and other factors have impacted India's diamond market.
