Daily Current Affairs : 22-July-2023
On November 21, India’s Prime Minister is set to inaugurate the Surat Diamond Bourse (SDB), a groundbreaking project aimed at transforming the diamond trading industry in the country. The SDB is touted to be the largest office space project of its kind worldwide and holds immense potential to revolutionize the diamond trading landscape in India. This essay delves into the significance of the Surat Diamond Bourse and its potential impact on the diamond trade, particularly in relation to the Angadia system.
The Surat Diamond Bourse: A Game-Changer in Diamond Trading
The Surat Diamond Bourse has been meticulously designed to expand and relocate the diamond trading business from Mumbai to Surat, which is already known as the hub for diamond cutting and polishing. This strategic shift comes with several key features:
- Thematic Landscaping: The SDB boasts a unique thematic landscaping based on the ‘panch tatva’ theme, representing the five elements of nature: air, water, fire, earth, and sky. This innovative design adds a touch of aesthetics to the world’s largest office space, providing an inspiring and harmonious environment for diamond traders and businesses.
- Reducing Mumbai’s Space Crunch: A significant portion of diamond trading activities currently take place in Mumbai, where office real estate is expensive and scarce. The establishment of the SDB in Surat not only decongests Mumbai but also offers ample space for national and international diamond buyers to conduct their business seamlessly.
Significance of the Surat Diamond Bourse
The inauguration of the Surat Diamond Bourse holds tremendous significance for the Indian diamond trade, addressing various challenges and unlocking new opportunities:
- Economic Impact: The diamond trade is a crucial contributor to India’s economy, and by shifting a substantial part of it to Surat, the city can witness a significant boost in economic activity, job creation, and infrastructural development.
- Efficiency and Time-Saving: Currently, a considerable amount of diamond traded in Mumbai is manufactured in Surat and transported by local Angadias via trains, a process that takes over 4.5 hours. With the SDB in Surat, the entire diamond trade process can be streamlined, reducing transportation time and enhancing efficiency.
- Boosting Surat’s Diamond Industry: As a major hub for diamond manufacturing, Surat stands to gain from the establishment of the SDB. The increased business activity and investments in the city can lead to further growth and development of its diamond industry.
Understanding the Angadia System
The Angadia system is a century-old parallel banking system in India, primarily used in the jewelry business. It involves the transfer of cash from one state to another through a person called Angadia, acting as a courier. The system is popularly used between Mumbai and Surat, the endpoints of the diamond trade. Key points about the Angadia system include:
- Community Involvement: The Angadia system is predominantly operated by members of the Gujarati, Marwari, and Malbari communities, who play a crucial role in facilitating the cash transfers.
- Legitimacy and Suspicions: While the Angadia system itself is legal, there have been suspicions that it may sometimes be used for transferring unaccounted or black money due to the absence of proper documentation and accounting.
Important Points:
- The Surat Diamond Bourse (SDB) is set to be inaugurated by India’s Prime Minister on November 21.
- It is claimed to be the world’s largest office space project in a single location.
- The SDB aims to shift the diamond trading business from Mumbai to Surat, known for diamond cutting and polishing.
- Thematic landscaping at SDB represents the five elements of nature: air, water, fire, earth, and sky.
- The shift of diamond trading to Surat will reduce Mumbai’s space crunch and offer amenities for international buyers.
- Currently, a significant amount of diamonds traded in Mumbai are manufactured in Surat and transported by Angadias, taking over 4.5 hours.
- Angadias are a century-old parallel banking system used in jewelry business, primarily between Mumbai and Surat.
- The Angadia system involves transferring cash from one state to another through couriers.
- Gujarati, Marwari, and Malbari communities are primarily involved in the Angadia business.
- There have been suspicions that the Angadia system may be used for transferring unaccounted or black money due to lack of documentation.
- The SDB’s inauguration holds significance for India’s economy, job creation, and infrastructural development.
- It is expected to streamline the diamond trade process, saving time and increasing efficiency.
- Surat’s diamond industry stands to benefit from increased business activity and investments.
- The establishment of SDB may address concerns related to unaccounted money transfers associated with the Angadia system.
- Overall, the SDB marks a significant milestone in India’s diamond trading history, potentially bringing transparency and progress to the industry.
Why In News
The Prime Minister of India’s presence at the inauguration of the Surat Diamond Bourse on November 21 will undoubtedly mark a historic moment, signifying the nation’s thriving position in the global diamond industry. With its grand scale and state-of-the-art facilities, the Surat Diamond Bourse is poised to attract international attention and solidify India’s status as a major player in the world of diamonds.
MCQs about Surat Diamond Bourse
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What is the primary objective of the Surat Diamond Bourse (SDB)?
A) To establish the largest diamond mine in India.
B) To relocate diamond trading business from Mumbai to Surat.
C) To promote tourism in the Surat region.
D) To create a new financial center in Mumbai.
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What is the thematic concept behind the landscaping at the Surat Diamond Bourse?
A) Modern architectural design with eco-friendly features.
B) Representation of the Indian cultural heritage through sculptures.
C) Themed on the ‘panch tatva’ or five elements of nature.
D) Incorporating elements from various international architectural styles.
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What is the significance of the Surat Diamond Bourse for Mumbai’s diamond trade?
A) It will attract more international buyers to Mumbai.
B) It will decongest Mumbai’s office real estate market.
C) It will create better amenities for local diamond traders.
D) It will reduce the transportation time of diamonds from Surat to Mumbai.
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What community is primarily involved in the Angadia system of money transfer?
A) Bengali, Telugu, and Kannada communities.
B) Gujarati, Marwari, and Malbari communities.
C) Punjabi, Sindhi, and Rajasthani communities.
D) Tamil, Malayali, and Odia communities.
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