Diamond trade and export from India

advt 468 x 60

June 15, 2009: As we discussed earlier in January 2009, global economic crisis had forced Gujarat’s multi-thousand crore diamond industry out of gear. The gravity of problem can be understood from the fact that atleast 4 lakh workers employed in this industry were rendered jobless and around 2200 diamond units were closed. Gujarat state fulfils two third of the world's demand for processed diamonds. In Gujarat the citties of Surat Amreli, Bhavnagar and Ahmedabad are mainly responsible for diamonds business.

B.S. Swami, a diamond merchant from New Delhi said, "After reeling under such a bad time of recession, we are noticing some movement and a ray of hope in the diamonds market for a month." B.S. Swami is one of the Diamond exporter to America and also related to diamond cutting and polishing industry.

The diamond industry in Indian states of Gujarat, Rajasthan and Mumbai is now receiving fresh orders from USA, Europe, Singapore and Hongkong. Middle class families are also going for small diamonds ornaments like ear rings and rings with cost ranging between Rs 5000/- to Rs 10,000/-. Realising this, Indian diamond exporters began to target domestic market during recession. They got such a positive response that they are now equally interested in tapping domestic market along with foreign market.

By September 2008, many Indian merchants had invested huge amount of money to purchase crude diamonds at high prices. Some of them got money to purchase diamonds from financial institutions. This was followed by decline in demand of processed diamonds as well as rough diamonds. Since then, the poor merchants are keeping the stock of crude diamonds, finished diamond jewelry and gem stones in hold with a hope of rice in demand. Fall in price of rupee as compared to dollar has added to the woes of diamond merchants.

advt 300 x 250

The Gems and Jewellery Export Promotion Council (GJEPC) which is sponsored by Ministry of Commerce and Industry, Govt of India has admitted near 8 percent fall in export of finished diamond items this year as compared to last year. USA is the main buyer of Indian products with around 50% export targetting the United States. The peak season for export to America and rise in demand of diamond jewelry is Christmas.

Meanwhile, Reserve Bank of India has set up a task force to revive the dying diamonds industry. It has asked banks to provide loan to diamond merchants against their stock with relaxation in the terms. A seminar was organised in March 2009 in Ahmedabad to make traders aware of it. RBI is also considering to provide relief to the workers in diamond industry who have lost their jobs. 

GJEPC was established in 1966. It has major roll in promoting India gems and jewellery export from India. It strived continuously to train Indian industry to the standards of international market. The efforts are so fruitful that we can see Indian Gems and diamonds are preferred in global market. The council has its offices all over India. It organises seminars, fairs and exhibitions to promote the trade. GJEPC has also stepped into the field of education and training of workers about gem stones and diamonds. It will help the business houses find the required skill set. GJEPC also organises annual award function to promote and encourage the outstanding players in the trade.