Putin's India Visit to Focus on Diamond Trade

Mumbai: India and Russia will discuss ways to boost the direct trade of diamonds when Prime Minister Narendra Modi meets Russian President Vladimir Putin in Goa on 15th October, reports Deccan Herald.

Modi will discuss with Putin the measures New Delhi is contemplating on to simplify the taxation and customs procedure to make it easier for Russian traders to export rough diamonds to India directly, avoiding the intermediaries, sources told DH.

Modi and Putin will hold the annual meeting in Goa on October 15 before joining their counterparts from Brazil, China and South Africa for the eighth BRICS summit.

Russia continues to be the world’s largest producer of rough diamonds, registering a 9.4% rise in production to reach 41.9 million carats, worth $4.24 billion. India accounted for 37.77% of the global import of rough diamonds in 2015 and remains the largest diamond polishing hub of the world.

However, 80% of India’s total import of rough diamonds from Russia comes through other countries.

New Delhi and Moscow have been discussing ways to boost direct diamond trade between the two nations. The number of Indian resident companies signing long-term rough diamonds supply contracts with PJSC ALROSA of Russia has increased from nine in 2014 to 12 in 2015.

A special customs zone was created in the Bharat Diamond Bourse in Mumbai in 2015 to facilitate direct diamond supplies from Russia to India.

Modi’s meeting with Putin might see them agreeing on further developing the notified zone, easing tax and customs procedure and upgrading its rough diamond auctions mechanism, sources added.