Putin’s Visit Boosts India's Diamond Business

New Delhi: Recent visit of the President of Russian Federation Mr. Vladimir Putin to New Delhi has certainly boosted Indo-Russian ties in diamond sector.

Mr. Putin along with Mr. Narendra Modi, Hon’ble Prime Minister of India visited Vigyan Bhavan today, the venue of on-going World Diamond Conference in in New Delhi to enhance the morals of the delegates.

Mr. Narendra Modi said, “India is the natural venue for this conference. It is believed that diamond is India’s gift to the world. More than two thousand years ago, diamond was deeply valued in India. It was even traded with China over the Silk Route. Till about the 18th century, India was considered to the only source of diamond.”

The Prime Minister said, I have extended three proposals to President Mr. Putin. First, I would like ALROSA to have direct long term contracts with more Indian companies. I am pleased to know that they are moving in that direction. Second, I want ALROSA and others to trade directly on our bourse. We have decided to create a Special Notified Zone, in which major mining companies can import rough diamonds on a consignment basis and re-export unsold ones. This is going to benefit Indian diamond industry and create more jobs for our youth. Third, I asked President Putin to reform regulations so that Russian jewellery makers can send their rough diamond to India and re-import polished diamond without paying duty. This will give a boost to our diamond industry. These measures will also boost India-Russia economic ties.”

The Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman said, “The Ministry has supported and promoted this (diamond) sector in its initial phases wherein, the imports of rough diamonds to India were eased which in itself provided a smooth take-off for this industry. She further added that since then the growth in the diamond sector and progressive improvement in the value addition chain has been contributing in the nation’s industrial development.”

She underlined the fact that her Ministry has supported the cause of eradication of conflict diamonds in India and worldwide by being a founder member of Kimberley Process Certification Scheme. “India still has tremendous potential, not yet exploited, for diamond sector exports. India has currently, largest number of artisans for making jewellery in the world. Practically, every village boasts of a family of artisans, having a very long tradition of jewellery making,” she added.

The diamond industry, the Minister said, is an ideal example of Make in India, which is the vision of our honourable Prime Minister. We have achieved the number one position in the world for manufacturing of diamonds.

Smt. Sitharaman further added that her Ministry realizes that the sector has been experiencing a weakening demand and that the consumer demand for diamonds need a tremendous boost. Through this conference, we aim to address the most urgent issues being faced by the diamond industry at present- the revival of consumer enthusiasm for diamonds and the consequent increase of market share for diamond jewellery in the luxury sector.

India’s diamond sector has established itself as the world’s largest manufacturing centre of cut and polished diamonds for the last many years, contributing 70% of the world’s supply in terms of value, 85% in terms of volume and 92% in terms of pieces. Surat along with Navsari, Bhavnagar, Amreli are known as the diamond manufacturing hub whereas Mumbai is the diamond trading hub.