India’s Diamond Growth to Slow Due to Lack of Rough

Photo credit: De Beers Group

Exports of gems and jewelry from India are expected to rise 5 to 7 percent in 2012/13, a slower pace than the prior year than the estimated 9 percent growth in 2011/12 that ends in March, as sourcing of rough diamonds and color stones is the "biggest constraint," Rajiv Jain, chairman of Gems and Jewellery Export Promotion Council, reportedly said.

Jain expects gems and jewelry exports from India to rise to $47 billion in the 2012 fiscal year, Reuters reports.

India, the largest diamond manufacturing center in the world, does not mine diamonds of its own. It depends on raw materials from Botswana, Zambia and South Africa among others for supply.

"Every mining country wants to process diamonds and color stones in their home country and increase employment there," Jain reportedly said.

Gems and jewelry amounts to 17 percent of India's total exports, and employs 1.5 million workers.

Jain reportedly said the council was focusing on Latin American countries and Commonwealth of Independent States, along with China, to promote jewelry from India, but will take time for substantial increase in the market share, Reuters reports.

India’s Gems, Jewelry Exports Projected to increase by 10%

India’s gem and jewelry exports in 2010-11 (April-March) are likely to rise 10 percent, year-over-year, based on an improvement in demand for the US and China, according to Vasant Mehta, chairman of India’s Gem and Jewellery Export Promotion Council.

“It is very early to say how the US will perform, but it is coming up step-by-step and there are indications that demand from the world’s largest consumer will go up by at least 10 per cent from last year,” Mehta said addressing the media at the India International Jewellery Show in Mumbai. In 2009-10, India exported $28.41 billion worth gem and jewelry, up 16 per cent from the previous year.

He said that Chinese market was also looking promising and demand for Indian jewelry from West Asia was also on the rise reviving hopes of higher exports for the industry, according to the India's Business Standard publication.

Mehta added that the Indian participants received good response in series of buyers-seller meets organized by GJEPC with Chinese counterparts in the past few months.

India’s Gems and jewelry industry accounts for 17-23 percent of the total earnings for the country, he said.