NEW DELHI: Although, September did not prove to be a fruitful month for polished diamond trade as India registered over 30% decline as compared to the same month last year, but traders are hopeful that the industry will gain good growth momentum in the coming few months.
While talking to SME News about the decline in polished diamond trade in India, Ashok Minawala, Director of Danabhai Jewellers, said, “The diamond trade in India has seen considerable decline past month, but we are hopeful that the industry will witness strong growth in the coming months. I am not disagreeing that economic downturn did effect almost every industry, but it has proved beneficial for this sector as many traders found new markets.”
Reports suggest that with the decline in demand from the conventional export destinations such as US and Europe, many diamond players have started to look for new trade avenues with the emergence of new locations such as Pakistan.
Traders are also of the opinion that the demand in new markets such as Pakistan will grow manifold as they also enjoy similar fondness for diamonds like Indians consumers.
Minawala said, “It is possible that Pakistan emerges as a prominent diamond market for India. They also prefer diamonds in their jewellery like Indians. In the present times, the trade is occurring in small quantities but in later stages, this amount may gain momentum as well. If India is able to directly import diamonds to Pakistan, the trade levels will also go up further.”
Presently, Pakistani consumers import Indian cut and polished diamonds through Dubai or Hong Kong. It is believed that the diamonds imported to Pakistan through Dubai or Hong Kong, costs more than the direct import from India.
Market analysts feel that that the bilateral trade sentiment may get a boost with Pakistan allotting India the Most-Favoured Nation (MFN) status. Dubai Customs has revealed that Dubai imported nearly $9.5 billion worth of goods from India in the first six months of this calender year. These imports mainly comprise of diamonds and jewellery.
Meanwhile, India’s gems and jewelry export growth is expected to be flat during this year due to the present global economic environment. This is also one of the reason why many trade bodies are planning to organise fairs to enhance the presence of Indian diamonds. Gem & Jewellery Export Promotion Council (GJEPC) has said that it is mulling to promote diamonds across India and China for expanding the reach of Indian players in new markets.