Indian President Narendra Modi inaugurated a “Diamond Exchange” this Sunday in Surat in Gujarat, a state on the Pakistani border. It is here that almost all of the diamonds produced in the world are polished. He thus hopes to breathe new life into a sector that has been struggling since the start of the war in Ukraine and the sanctions imposed on Russia.
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In Surat, before the war in Ukraine, 95% of Russian diamonds were polished. Now they are arriving in trickles. Even if India has not taken sanctions against Moscow, the world’s leading diamond extractor, the entire Surat region is suffering from the blockade imposed by the West.
The sector is facing payment difficulties after the banning of Russian banks from the Swift system and supply problems, with Westerners having decided gradually to no longer buy Russian diamonds. As a result, tens of thousands of jobs have been lost.
A building larger than the Pentagon
Narendra Modi, himself a native of this city, hopes to make it the diamond capital thanks to this brand new stock exchange. In this immense office building, larger than the Pentagon, there will be international banks, safes, a shopping center specializing in jewelry. The entire ecosystem necessary to restore the image of the Indian precious stone.
The country saw its diamond exports fall by 29% from April to October. But he is counting on the production of synthetic stones made in the laboratory to get back on track. Narendra Modi said it again, he makes it a priority.
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