Gujarat Province, India
The ancient Gujarati port city of Barygaza (Broach), on the Gulf of Cambay, was at the crossroads of trade routes to China, Persia, Greece, and Portugal, and was a major trading center since the time of Ptolemy (c. 90 AD - c. 168 AD) [9]. Mughal jewellery, gold, silver, textiles, coral, ivory, pearls and gemstones all passed through Barygaza, making it a mecca for artisans, carvers, and stone-cutters for over 1000 years.
To this day a substantial diamond cutting industry has grown up in the cities of Ahmedabad, Bhavnagar, Mumbai, Navasari, and Surat in Gujarat province on the central-western coast of India, where a workforce of around 800,000 people cut and polish 80% to 90% of the world's diamonds in a hodgepodge of 'cottage industry' style sweatshops and cutting houses. The average cutting-house employs 50 to 200+ workers. Labor costs in India are very low ($.60 to $1.00 per stone) when compared to the more industrialized diamond centers. In Mumbai alone, the diamond-cutting industry employs an estimated 100,000 workers.
Much of India's diamond trade is controlled by a handful of wealthy families, many with the common surnames of Jhavari, Mehta, and Shah. Most of the 'diamantaires' in Gujarat's polishing industry are Jain, and ancient Indian religion and philosophy dating back to the 8th century BCE.
(photo to right) Jain Temple in Surat - jainworld.org
Surat, the 'Diamond City of India'
Surat, a city by the Gulf of Khambat (aka the Gulf of Cambay), is considered one of the hubs of the global diamond trade, and "the diamond city of India." The De Beers controlled Diamond Trading Company (DTC) has demonstrated Gujarat's power in the diamond-cutting arena by increasing its take of the DTC's 125 lucrative 'sightholder' contracts to nearly 50 in 2005.
It is estimated that India cuts, polishes, and exports over one-billion dollars worth of gems per year. Gitanjali Gems is India's largest manufacturer of diamonds, with cutting facilities in Surat's 'Special Economic Zone' and in Borivali, Mumbai. Some of the major firms in Gujarat's diamond industry are: Bhavani Gems, D. Navinchandra & Co, Gitanjali, M. Suresh & Co, Sanghavi Exports, Shree Ramkrishna Exports, Venus Jewels, and Vijaydimon. All are facilitated through the Hindustan Diamond Company Ltd. (HDC), and De Beers India.
India has had a reputation for only cutting smaller diamonds, and the city of Bhavanagar is known for processing the smallest stones, with final polished sizes of between 0.5 and 2 points [2]. Until recently, the cities of Surat and Mumbai (Bombay) were also know for cutting and polishing smaller stones of lesser value, but this reputation is beginning to change. In recent years, modernization and a skilled labor force are positioning Gujarat's diamond industry to rival the prestige of Antwerp's Jewish community.
Government Cooperation
According to the Times of India, as of April 1, 2006, the Gujarat state government has exempted Suratıs diamond-cutting industry from state-imposed VAT (Value Added Tax) taxes.
