The diamond industry cannot enforce written contracts – diamonds are easily portable, universally valuable and virtually untraceable, and state courts are incapable of enforcing executory contracts for diamond sales. It operates on credit, relies on trust, and hence favours tightly knit community and family-based business networks. [..] Gujarati business communities operate along similar lines, with strong family networks and a high incidence of marriage within their ethnic group.
This looks like a business designed for Gujaratis.
From movie Baazar: “Ek Banda hai Jise Humne Check Nahi Kiya”
The Gujarati Jains took advantage of two key factors to enter into the closed world of Antwerp’s diamond industry: they started to specialise in smaller, lower-value stones, and used the cheap labour and excellent skill of Surat’s diamond cutters and polishers to produce diamonds that had larger market potential. Thus, Gujaratis were able, as one trader put it: “to polish in rupees and sell in dollars”.
Software industry is dreaming of achieving this. Build in Rupees and sell in Dollars. But unlike diamond industry, the quality of software engineers in India is still mixed. question.
two communities which have come to dominate the trade – the Palanpuri Jains and the Katiawadi Patels. […] The Katiawadi Patels were once agricultural labourers who moved to Surat, in order to escape drought. They started off as cutters and polishers, but quickly moved up the ranks and over time accumulated enough capital to open their own factories.
Katiawadis are not know for their business acumen. They are straight forward people and say what is in their heart. People from Ahmedabad are known to be political and diplomatic. It is a pleasant surprise to know that Katiawadis can be world class businessmen.
Diamond business must be good: