India is determined to replace Belgium as the world's diamond trading center. The Vice Chairman of the Gems and Jewelry Export Promotion Council (GJEPC), Vasant Mehta, tossed the gauntlet while leading an Indian industry delegation in China. He noted that India has opened up and offers good facilities. He added: "The government is offering good support."
According to Expressindia.com, he stated: "We are keen to take the role out of Belgium." He also noted that the task would not be too difficult because the ten leading companies in Belgium are owned by Indian companies.
Mehta claimed that India is already a major manufacturer and said there was no reason why it should not become a leading trade center as well. While admitting that Dubai also aspires to become the global center by offering tax advantages, he noted that India has reduced import duty on polished diamonds to 5%. He added: "We are hoping that the duty will come down to zero in another year or so." Mehta noted that increased job opportunities and foreign currency would compensate for the loss of revenue.
The Indian press recently published data about the export of polished diamonds up to the end of February 2007. Due to a decline in US demand and volatile gold prices, the export of polished diamonds from India decreased by 6% during the first 11 months of the fiscal year. However, total exports, including diamond-studded gold jewelry and colored gem stones, grew by 5% during this period.
The industry forecasts a continued downward trend in polished diamond exports in the near future. Indian experts expect the situation to improve during the fiscal year of 2008, which begins in April 2007.
