Surat Diamond, a century account by French gem merchant Jean-Baptise Tavernier paints a vivid picture of a vibrant Surat, a key entry point for European traders seeking India’s spices, cotton, silk, and natural diamonds. During the Mughal period, Surat earned the nickname of ‘Zari City’ courtesy a unique textile craft, a result of mixing gold, silver and copper threads with silk and cotton.

Surat, the entrepreneurial city
By the early 18th century, India was a global diamond trading hub, aided by the Portuguese; colonial masters of Surat Diamond mines in Brazil, and the Indian port-city of Goa.

The Surat chapter of the diamond story began in 1900 when two enterprising brothers from the Patidar community, Gandabhai Kuberdas Mavjivanwala and Shri Rangeeldas Kuberdas Mavjivanwala started diamond cutting and polishing in the Vadi Faliya area of Surat upon their return from South Africa. It took over 50 years for the small tribe to take steps towards becoming a large scale industry.

The second world war further aided in Surat’s development. Govind Dholakia, Founder & Chairman at SRK Exports, explains. “Before 1940, the business of diamond cutting and polishing was in Yangon, Myanmar (known as Rangoon, Burma). The Japanese invasion of Myanmar caused diamond artisans to return to their hometown, Surat-Navsari, Gujarat, India.” According to Dholakia, merchants sending rough Surat Diamond to Rangoon shifted to Surat. The Zari industry was already flourishing under the leadership of the Patel community. Their entrepreneurial instinct resulted in their involvement in diamond cutting and polishing.

Decades of development
In 1956, Mr. H.B. Shah, a diamond merchant in Mumbai, started a cutting and polishing unit for natural diamonds and welcomed workers from other communities. “Until the early sixties, the industry used to get limited rough diamonds from Golconda and Panna mines, sufficient for local market demands,” explains Sevantibhai Shah, Chairman at Venus Jewel. The Indo-China war of 1962 dampened domestic demand for natural diamonds, motivating players to seek international clients. In the mid-sixties, the Export Promotion Council (EPC) was established and the Indian government introduced the replenishment license policy, which permitted the import of rough diamonds equivalent in value to 70% of processed diamond export earnings. The policy was a game-changer, magnifying the scale of diamond processing in India. Few entrepreneurs played a leading role in the industry’s development, namely Hemchand Mohanlal Jhaveri, Kirtilal Manilal Mehta, Chandulal Mohanlal Mehta, Mafatlal Mohanlal Mehta, Ratilal Becharlal Jasani, and Kirtilal Kalidas Doshi.

Patronage and progress
A network of players originating from India established trading offices in Antwerp, offering diamonds on credit to Indian manufacturers. By 1966-67, diamond exports from India had reached 28 million USD, but this was only the beginning.