Diamond sector urged to focus on trading

The diamond industry of India, primarily based at Surat in Gujarat, must look to convert itself from a manufacturing hub to a trading hub, said Sanjay Kothari, chairman of Gem and Jewellery Export Promotion Council (GJEPC), the apex body of gem and jewellery export promotion in the country.

Eleven out of every 12 diamonds cut and polished in the world are done in India, but almost all diamonds are exported back again to other countries.

"Over a period of 40 years, India has emerged as the leader in diamond cutting and polishing, but I think we have now reached a stage, where there is no need to export loose diamonds back again. India must convert itself from a diamond manufacturing hub to a diamond trading hub," Kothari said.

Interestingly, China is soon emerging a major competitor to Surat's diamond cutting and polishing industry, that is also present in a smaller way at Ahmedabad and Saurashtra.

Kothari said over a dozen diamond cutting and polishing units have shifted out of Surat to China, but added that India has managed to snatch some of China's gem and jewelley value addition units as well.

With a low cost efficient labour and a government policy that promotes low cost labour use, China is fast emerging as a centre for diamond cutting and polishing with over 20,000 persons involved in the job.