Indian Diamond Institute's Dubai centre plan stalled

The Central government has rejected the idea to open a branch of Indian Diamond Institute (IDI) in the Gulf city as Dubai is a major hub for the diamond industry and poses serious threats to the Indian diamond industry.

"The commerce ministry has, some days back, turned down the proposal regarding opening a branch of IDI in Dubai," said, K K Sharma, executive director, IDI.

IDI was recognised as a diamond grading and certifying agency by the commerce ministry, some months back.

"Some diamond businessmen of Dubai had visited IDI a few months back. They were very impressed with the courses on jewellery and diamond at the institute. They were also impressed with the fact that IDI is the only Indian organisation to be certified as a diamond grading and certification agency," he added.

"Since jewellery and diamond industries are growing at a fast pace in Dubai, the businessmen felt the need for an institute like IDI in their city. The Dubai businessmen submitted a proposal one month back which impressed upon the managing committee of IDI. But since the commerce ministry is the final authority, the proposal was forwarded to it," Sharma said.

According to Sharma, the ministry's refusal has not come as a surprise.

"Dubai and China are slowly, but surely emerging as potential threats to the Indian diamond industry. They are offering various incentives to attract the Indian diamond businessmen. Though the Indian industry has remained unaffected so far, the threat is always there, he said.

"Under these circumstances, the Central government will naturally desist from taking any step that could help promote the diamond industry in any competing country, and hence the refusal to the proposal was very much expected," he explained.

"The commerce ministry has, however, said that IDI could help the Dubai businessmen technologically in setting up institutes similar to it," he added.

The IDI was set up in the 1970s jointly by the Gem & Jewellery Export Promotion Council, the state government and the central government, with the objective of imparting training in jewellery designing.

The institute has recently written to the state government seeking additional land in Surat or its vicinity, for implementing its expansion plans.