ALROSA’s entry into India in diamond production to reshape the Surat diamond sector’s dominance?

ALROSA plans a polishing facility in Surat, potentially reshaping the global diamond value chain, as India faces a 50% US tariff and rising geopolitical pressure. Russia’s state-backed diamond miner ALROSA, one of the world’s largest rough diamond producers, has announced plans to enter India by setting up a diamond polishing facility, likely in Surat. The planned $50 million investment marks the miner’s first overseas expansion and signals a strategic move into downstream operations long dominated by Indian firms.

The US, India’s biggest jewellery export market has imposed a 50% tariff on Indian diamonds, citing concerns over India’s growing proximity to Russia. With geopolitical risks rising and margins shrinking, Surat’s industry, which polishes 9 out of every 10 diamonds sold globally, is watching ALROSA’s move with both caution and concern. According to a senior diamond exporter, if a mining giant starts polishing on Indian soil, the entire value chain may shift, as Surat has enjoyed uncontested dominance for 40 years, and the monopoly faces a real test.

ALROSA’s expansion into India is currently viewed cautiously by the Indian diamond sector because, according to some, by establishing its own unit, the company can directly tap into India’s expertise while tightening control over global pricing and supply mechanisms; and may also offer preferential rough diamonds for its own plant, creating an uneven playing field for independent processors in Surat.

However, industry veterans argue see a different scenario altogether, in that… ALROSA’s entry could modernise India’s diamond sector with blockchain-based supply chain tools, retail partnerships, and global branding. And also, considering the current geopolitical situation, veterans expect ALROSA will understand India’s current position in the diamond production scenario, and be more cooperative and helpful to the Indian diamond sector.

So, it’s best to wait and watch…as the future holds the correct story!