Falling Oil Prices to Spur Diamond Demand in India

Philippe_MellierMumbai: De Beers is optimistic about an increase in demand for diamonds in India and US in 2015 following the downwardly trending oil prices. It expects the slide in oil prices to turbo charge the diamond consumer markets, according to a report published in The Times of India.

At the recent reception to mark the first 12 months of sightholder sales in Gabarone in Botswana, chief executive officer of De Beers Group Philippe Mellier said, “The recent downtrend in oil prices is also expected to be an important factor in 2015. This should benefit the US economy, but also the emerging markets as the price changes have had the effect of transferring benefit from oil exporters to importers. India is expected to be among the bigger beneficiaries of this trend and its growth is forecast to increase to around 5.5 per cent in 2015.”

The Indian diamond jewellery consumer market is pegged at $8 billion per annum and it is predicted to achieve the growth rate of 14 per cent per annum.

Chairman of Gems and Jewellery Export Promotion Council (GJEPC) Vipul Shah said, “The purchase power of Indian consumers has increased with prices of petrol, diesel, gas and other linked commodities coming down drastically. However, the diamond industry needs to capitalise on this trend to push their sales.”

He said jewellery manufacturers have come up with the jewellery designs in economical range suiting the taste and pockets of even the middle class consumers who can now purchase diamond jewellery in the range of Rs 5,000 to Rs 10,000.