The Surat SEZ, with 121 operational units, is the only SEZ for gems and jewellery export apart from the diamond bourse. Among these, 80 units are into manufacturing of diamonds, gems and jewellery products. (File Photo)
Export of gems and jewellery from Surat’s Special Economic Zone (SEZ) at Sachin fell by half in terms of value in the just-concluded financial year when compared to 2022-23. The traders blamed this on the fall in demand on account of the Russia-Ukraine and Israel-Hamas wars, as well as the crackdown on gold smuggling by the Directorate of Revenue Intelligence (DRI).
From diamonds, gems and jewellery exports worth Rs 26,513.07 crore in 2022-23, the number fell to Rs 12,765.44 crore this year. In 2020-21, the exports were worth Rs 16,161.65 crore, among the overall exports worth Rs. 17845.55 crore recorded by the SEZ.
The Surat SEZ, with 121 operational units, is the only SEZ for gems and jewellery export apart from the diamond bourse. Among these, 80 units are into manufacturing of diamonds, gems and jewellery products.
Veteran diamond manufacturer and former Gujarat Region chairman of Gems and Jewellery Export Promotion Council (GJEPC), Dinesh Navadiya, said: “There are a few major reasons behind the dip in exports of diamond, gems and jewellery. These are the Russia-Ukraine and Israel-Hamas wars, inflation in the US that is a major consumer, China struggling to get over its Covid-19 impact and strict action taken by DRI and other agencies against firms in the SEZ that are giving fake export figures while selling goods in the domestic markets.”
In the last four years, the Surat DRI has booked seven units in this connection. In March and April this year, the DRI has lodged 16 cases of gold smuggling across the country, including one in Ahmedabad.
GJEPC (Gujarat Region) Chairman Vijay Mangukiya said, “The reason behind exports going down in the diamond, gems and jewellery segment is that there is no major demand in the international market. Also, the ongoing wars and the sanctions laid by G7 nations on Russian diamonds have led to dip in exports.”
“The Indian market consumes over 35 per cent of rough diamonds imported from Russian Alrosa diamond company. Due to the ban on Russian diamonds, there is shortage of rough diamonds in the Indian market. Even the prices of lab-grown diamonds have gone down.”
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Overall, the production of diamond, gems and jewellery have gone down to 30 per cent, he added. According to Surat SEZ data, while the pharma and chemical segment has seen a rise in exports since 2020-21, exports have dipped in the textile and garment, plastic and rubber as well as software and services segments. The medical equipment and device segment has seen a rise in exports along with the engineering products segment. The export of tobacco products, meanwhile, has dipped.
Kamal Saiyed is a senior Correspondent for The Indian Express, providing extensive, on-the-ground coverage from Surat and the broader South Gujarat region and the Union territories of Daman, Diu & Dadra Nagar Haveli. With a reporting career at the publication spanning back to 2007, he has established himself as a high-authority voice on the industrial, social, and political pulse of one of India’s fastest-growing urban hubs.
Expertise
Industrial & Economic Beat: Based in the "Diamond City," Saiyed offers expert reporting on the diamond and textile industries. His work tracks global market shifts (such as De Beers production changes), local trade policies, and the socio-economic challenges facing the millions of workers in Surat’s manufacturing hubs.
Civic & Infrastructure Coverage: He consistently reports on urban development and public safety in Surat, including:
Traffic & Urban Planning: Monitoring the city's 13-fold increase in traffic violations and the implementation of new municipal drives.
Public Safety: Investigative reporting on infrastructure failures, fire safety NOC compliance in schools and commercial buildings, and Metro rail progress.
Political Reporting: Tracking the shifting dynamics between the BJP, Congress, and AAP in South Gujarat and the neighboring Union Territories (Daman, Diu, and Dadra & Nagar Haveli).
Crime beat: Armed with a good source network Saiyed has been able to bring out the human side of crime stories in his region ... Read More
