The global diamond industry, centered in Antwerp, Belgium, has witnessed one of the most remarkable ethnic transitions in modern commerce. For centuries, the trade was synonymous with the Orthodox Jewish community, specifically the Hasidic and Sephardic diamantaires. However, over the last several decades, the baton of dominance has passed into the hands of a tightly-knit community from India: the Palanpuri Jains of Gujarat. This transition is not merely a story of competition, but a masterclass in business acumen, cultural adaptation, and the power of familial trust.
From mere 25 families of Palanpuri Jains of Palapur,Gujarat moving to Belgium in 1937 to 300 families today, the gripping odyssey of them capturing the global diamond trade market is a story of business acumen,traditional dedication and above all trust. The Palanpuri Jains are a force to reckon with in the great diamond bourses around the world.
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| Antwerp,Belgium diamond stock exchange voxeurop.eu |
Above image: Antwerp city, Belgium has the largest diamond market in the world and all kinds of diamonds are traded over there. For centuries Orthodox Jews had a monopoly in that trade which requires a lot of skill. The advantage the Palanpuri jains have is their technical skill to cut and polish smaller diamonds and how to source cheaper raw diamonds.In site of competition,they have good rapport with orthodox jews whose speciality is larger diamonds............
Historical Roots: From Palanpur to the World
The journey began long before the globalization of the 21st century. As early as the 1920s, pioneering merchants like Chandubhai Gambhirmal Mehta traveled from the princely state of Palanpur to Antwerp. Supported by the Nawabs of Palanpur, who trusted their Jain subjects with state treasuries, these merchants established a presence in Europe during the inter-war years. They identified a massive opportunity: "smalls." While European and Jewish manufacturers focused on large, high-value stones, the Jains saw potential in smaller rough diamonds that were considered too labor-intensive and costly to polish in Europe.
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| Bombay Antwerp Diamond trade gatewayhouse.in |
The Surat Advantage and Technical Innovation
The turning point for the Indian community came with the realization that they could leverage India’s massive, skilled, and cost-effective labor force. By buying small, low-quality roughs in bulk from Antwerp and sending them to Surat and Navsari in Gujarat for cutting and polishing, they achieved a significant competitive edge.
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| Surat,India diamonds qz.com |
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| Raw diamond stones. diamondworld.net |
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| Diamond cutting and polishing, Surat |
The labor costs in India were approximately seven times lower than in Belgium. More importantly, the Indian artisans developed a unique technical skill in handling stones below five carats, turning what was once considered "diamond dust" into dazzling, marketable gems. Today, while big stones (10–20 carats) are often still polished by Jewish traders using high-end Israeli software, the volume-based market belongs almost entirely to the Gujaratis.
When the Narendra Modi government took over the reigns in New Delhi, in 2014 budget passed by the Indian government gave a strong fillip to the diamond industry in the region, by raising custom duties on the import of polished and semi-polished stones.This means it will protect local polishing jobs (the diamond industry employs 500,000 people in Gujarat).
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| Diamond Bourse, Surat,GJ cnn.com |
Cultural Synergies and Business Ethics
The success of the Palanpuri Jains—now joined by the Shah, Mehta, and more recently, the Patel communities—is rooted in the "Palanpuri Story" of trust. In the diamond world, deals are often sealed with a handshake and a few words in Gujarati. This "closed network" ensures that capital and sensitive trade information circulate within a circle of trusted relatives and community members.
Interestingly, despite the shift in power, the relationship between the Jain and Jewish communities remains largely cordial. Both cultures share a deep respect for tradition, a commitment to non-violence, and a focus on family-run enterprises. The Jains have integrated into Antwerp’s social fabric, even building one of the world's most expensive and beautiful Jain temples in the city, signaling their long-term commitment to the region.
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| Cartoon characters |
The Current Scenario
By the mid-2000s, Indians accounted for an estimated €15 billion ($19 billion) of Antwerp’s €23 billion annual trade. They now hold the majority of seats on the board of the High Diamond Council (HRD), the industry’s governing body.
Conclusion
The Palanpuri Jains have captured the global diamond trade by combining traditional Indian values with a forward-looking global strategy. They turned a niche—the processing of small diamonds—into a multi-billion dollar empire. While the Jewish community remains a vital part of Antwerp's 500-year legacy, the "Gujarati force" has become the engine of the modern industry. Their journey from the dusty roads of North Gujarat to the high-tech exchanges of Hoveniersstraat remains one of the greatest success stories in the history of global trade.
Ref:
https://navrangindia.blogspot.com/2015/08/antwerp-belgium-world-diamond-center.html
https://edition.cnn.com/style/india-largest-office-building-surat-diamond-bourse
https://www.gatewayhouse.in/a-century-of-bombay-antwerp-diamond-trade
K.N. Jayaraman (Author: navrangindia.blogspot.com
