India's Diamond Trade Sparkles
Global Exports Lead Precious Jewellery Trade
Targeting the US$52-billion international retail market for diamonds, India has become the world's largest manufacturer of cut and polished diamonds.
India now processes 85% of the world's polished diamonds, far ahead of rivals Israel and the United States. India's diamond and jewellery industry employs more than 4 million workers, the largest pool of such skilled labour on the planet.
Diamond and jewellery exports from India surpassed US$14 billion in 2006, second only to its $26 billion in systems and technology-related exports.
What's remarkable about India's precious gem trade is the fact that no diamonds have been discovered in maharajah land for almost 50 years. So how has India become the leading force in retail diamond exports?
And The Winner Is...
First, 11 of 12 diamonds sold around the globe are processed in India regardless of where the diamonds are mined. The city of Mumbai is now a hub for exporting polished diamonds to the rest of the world. India projects diamond exports of $22 billion by 2015 which will further establish Mumbai as the world's trading center for other nations' rough diamonds.
India has shifted its trade focus from its domestic economy to global trade through liberalized trade policies and lowered tariffs. These measures have dramatically improved India's export market over the past 15 years, particularly for diamonds and jewellery.
India continues to show both strong enterpreneurship and leadership even after attaining its strong strategic position in the global diamond trade. Some 60% of India's largest diamond exporters and manufacturers have formed a public company to bid on international diamond mines including some exciting finds in Canada. By owning diamond mines around the world, India can ensure that rough diamonds continue to flow to Mumbai for processing.
India is also a champion of measures to eliminate blood diamonds, as a way to ensure that its diamond business is not tarnished by illegal and inhumane practices.
Sources: Toronto Star article Diamonds are India's best friends by Haroon Siddiqui (Feb 1, 2007 edition)
