A bunch of Indian diamantaires have been convicted of smuggling of diamonds into the Chinese territory, while another bunch has been released. But business is as usual for the Indian diamond industry, based out of Surat and Mumbai.
Which is why a business delegation from China is set to visit Surat to meet representatives of the industry.
“Yes, a delegation comprising members of the diamond industry is visiting China and similarly, a Chinese delegation is visiting India. However, the dates have not yet been finalised,” said Chandrakant Sanghvi, chairman, Gujarat region, Gems and Jewellery Export Promotion Council. “The visits are purely for business purposes and it has nothing to do with the slew of diamond traders released and others languishing in Chinese jails."
But has the recent controversy involving 22 Indian diamantaires had an impact on the Indo-China relationship as far as the diamond industry is concerned?
"The only impact the recent issue has had is the increased determination among diamond traders and polishers here to do ethical business with their Chinese counterparts. Otherwise, neither the amount of business increased nor decreased in the immediate past so far," said Dinesh Navadia, president of the Surat Diamond Association.
China is an important market for the Indian diamond industry. It also imports polished diamonds from India for jewellery manufacturing and exports the jewellery to various countries. Although China has a large number of diamond cutting and polishing units, it does not polish all types of diamonds.
“This incident in unlikely to affect the business sentiment,” said CP Vanani, former president of the Surat Diamond Industry.
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Sources say the issue is too trivial to impact business with China.
"In international business it is assumed that one has to adhere to local laws. Hence, irrespective of such issues, regular diamond polishers and traders trading with China are very much focused on continuing to do so, albeit legally," said Ajoy Bhattacharya, President, Southern Gujarat Chamber of Commerce & Industries (SGCCI).