Diamond cutting businesses in Surat are adapting to shifting market dynamics by diversifying into jewelry manufacturing. This move comes in response to weaker demand for polished diamonds, while there has been an increase in the appetite for gold jewelry, both in India and internationally.
According to Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), many Surat-based units have gradually expanded into jewelry production. “The units have started taking on job work in jewelry manufacturing,” Shah explained. “With rising demand for jewelry, both domestically and abroad, these businesses are seizing the opportunity to diversify their offerings.”
Shah noted that around 10% of Surat’s 5,000 manufacturing units are now involved in jewelry production, as they seek to engage workers and adapt to changing consumer preferences.
GJEPC figures show that from April to November, exports of polished diamonds fell by 19%, but foreign sales of studded gold jewelry increased by more than 14%, while plain gold jewelry exports rose by nearly 2.5%. This shift reflects the growing demand for gold jewelry as diamond sales struggle to maintain momentum.
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