India is a world-leader in the gems and jewellery industry but its exports are dependent entirely on imports of rough diamonds, gold and other coloured gemstones. The Minister of State for Commerce, Shri Jairam Ramesh who has been in regular interaction with the Gems & Jewellery Export Promotion Council (GJEPC) to discuss various issues facing the industry has held that the Security of supply of raw materials is thus an important issue for the sustainability of the industry. India imports close to $ 8 billion of rough diamonds.
With a view to ensure regular supply of rough diamonds, the Minister has held detailed discussions over the past three months with the Ambassadors of a number of countries including Russia, Canada, Australia, South Africa, Namibia, Lesotho, Botswana, Ghana, Angola, Azerbaijan, Armenia, Uzbekistan and Venezuela.
In his meetings with African countries, Shri Ramesh has stressed India’s commitment to ensuring “win-win” partnerships for both sides with India helping African countries build their local industry through technical assistance, while securing access to sources of rough diamonds. Further, negotiations between MMTC and Alrosa of Russia are in an advanced stage and a joint venture is expected to be finalized in 2007. The forthcoming visit of President Putin to India will added an extra momentum to this process.
On the domestic front, the preliminary explorations carried out by global companies in Madhya Pradesh, Chattisgarh and Andhra Pradesh have revealed good prospects for diamonds and coloured gemstones. Over the next decade with aggressive exploration and development, Indian sources could also be developed.
In his interactions with the GJEPC, Shri Jairam Ramesh has highlighted the importance of the diamond sector particularly which today accounts for 80% of total exports of gems and jewellery and is estimated to employ close to 10 lakh artisans and workers, both directly and indirectly. This industry is concentrated mainly in Maharashtra and Gujarat. The gold jewellery industry accounts for 15% of gems and jewellery exports and has expanded impressively in Maharashtra, Delhi, Bangalore, Kolkata, Chennai and Hyderabad. The coloured gemstone industry is also growing fast in Rajasthan, Maharashtra and Delhi. The Minister has also complimented the Gems and Jewellery Export Promotion Council (GJEPC) for preparing the Vision-2015 roadmap for the gems and jewellery industry in collaboration with KPMG. The Vision Document had outlined threats and opportunities in great detail. Growing competition from China, rise of new materials like palladium and steel, development of synthetic diamonds, consolidation in the world diamond industry and growth of new cost-effective cutting techniques are all possible scenarios which India has to plan for systematically. Shri Ramesh has called the Vision Document as an excellent blueprint which will be implemented by the Ministry of Commerce in all seriousness and sense of purpose.
Shri Ramesh has also asked the GJEPC to develop new areas for the industry within the country. As for example, thousands of workers from Orissa work in the diamond cutting and polishing industry in Surat. He has asked the GJEPC to explore how backward states like Orissa can generate employment and value-addition in the gems and jewellery industry. The Commerce Ministry has provided extensive assistance to establish the Indian Institute of Gems and Jewellery in Mumbai and the Sardar Vallabhbhai Institute for Jewellery Design and Manufacture in Surat. An expansion of the Indian Diamond Institute in Surat is also on the anvil. Maikanchan SEZ in Kolkata is the first-ever project in this industry and another SEZ is being developed in Sitapura near Jaipur.
Meanwhile, the M.R. Sivaraman Committee set up by the Finance Ministry at the initiative of the Commerce Ministry to recommend a growth-oriented fiscal regime for the gems and jewellery industry has recently submitted its report. The fiscal regime seeks to strengthen India’s global position and make Mumbai the world hub, replacing Antwerp.
India’s position in the world gems and jewellery industry has earned it the prestigious position of Vice-Chairman of the Kimberly process with the possibility of being Chairman in 2008. The Kimberly Process is a global initiative to certify that shipments of rough diamonds are free from “conflict diamonds”. India will provide technical assistance to African countries to ensure that they meet with the Kimberly Process certification standards.
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(Release ID :23729)