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Jewellery industry in tight spot

NEW DELHI: The current global financial crisis has left the booming India gem and jewellery industry in a tight spot. Fearing a drop in exports and sale of its products globally, Gem & Jewellery Export Promotion Council of India (GJEPC) has appealed to all the rough producers to curtail the supply of rough diamonds for a few weeks to maintain stability and confidence in the diamond market during the current economic turmoil.

“It is very vital that we maintain equilibrium between demand and supply and keep global stock and debt manageable during these challenging times,” said Vasant Mehta, Chairman, GJEPC, and Vice-President, International Diamond Manufacturers Association.

Appealing to council members to be cautious and understand the market reality, Mr. Mehta felt that with reduced supply, diamond markets would remain more stable and this reduction would be in the interest of all the stakeholders in the long run.

India is not only the world’s largest importer of rough diamond but also the largest exporter of cut and polished diamonds with over 90 per cent market share. India’s estimated imports of rough diamonds this fiscal would be around $10 billion, while exports of cut and polished diamonds are likely to cross the $14 billion mark.

At present, rough diamonds are procured by India through a variety of sources with the bulk of it coming through Antwerp in Belgium. But now India is also looking towards African nations like Angola.

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