Even as India's jewellery trade body, Gems and Jewellery Export Promotion Council (GJEPC) has forecast nearly flat growth of gems and jewellery exports from the country in the current year, diamond players are hopeful of new trade avenues emerging with the neighboring country, Pakistan.
"There is slackness in overall export demand (for diamonds). Demand from conventional export destinations like US and Europe is low and exporters have increased focus on domestic market. But with easing of trade possibilities with Pakistan, it will give a big push to direct export of diamonds from India to Pakistan," said Pravin Nanavati, former president, Surat Diamond Association and a leading diamond exporter from Surat.
Currently, export of diamonds from India to Pakistan is nil. However, Pakistani buyers import Indian cut and polished diamonds via Dubai or Hong Kong. According to industry insiders, diamonds imported to Pakistan via Dubai or Hong Kong costs about 10-15 per cent more than direct import from India.
"Pakistan is a big market for diamonds. No direct export is happening from India, but we hope that it would start happening. Initially, traders may begin with small quantities and later we can see good business coming from there," said Aagam Sanghvi, director, Sanghavi Exports - a leading diamond export firm.
It is expected that Pakistan will give India Most-Favoured Nation (MFN) status by this year end, thereby boosting the trade sentiment between the two nations. Currently, Indian diamonds are exported to Dubai and from there, it is exported to Pakistan. According to trade estimates, India exports significant part of its total diamond exports to middle east nations including Dubai. As per the latest data provided by Dubai Customs, Dubai imported about US $ 9.5 billion worth of goods from India during the first six months of 2012. A large part of these imports comprise of diamonds, jewellery, electronic devices and mineral oils.
According to industry body, GJEPC, flat growth in gems and jewellery export is mainly attributed to the current weak global economic scenario. However, industry players differ with the trade body and see things settling down soon.
"We have presence in all the key diamond trading locations across the world. Being in the industry, we sense market sentiment and therefore we see that demand for diamond is good and things are turning positive," said Sanghvi.
