Diamond industry of Surat witnesses sudden spurt in demand

KOLKATA/AHMEDABAD: After a lull of almost two months, the diamond industry of Surat is witnessing a sudden spurt in demand. Importers from the US, UAE, China and Europe have started placing orders with the Indian diamond trade. The industry hopes that September will be a better month. But Gem and Jewellery Export Promotion Council (GJEPC) feels that even though there is a positive swing, diamond exports in the current fiscal will be less by 15-20 per cent compared to FY12.

"The initial months of the current fiscal had not been good as the government imposed a 2 per cent duty on imported cut and polished diamond. This resulted in a 30 per cent drop in trading exports," said Rajiv Jain, chairman of GJEPC. During the first quarter of the financial year, the industry's cut and polished diamond exports fell by 25 per cent in rupee terms to Rs 21,902 crore.

The recently concluded International India Jewellery Show (IIJS) has given a fresh boost to the diamond exports, Jain said. In FY12, India had exported $42.84 billion of gems and jewellery. Diamonds accounted for 54 per cent of the exports, with gold jewellery contributing 38 per cent and coloured gemstones and others contributing 1 per cent each, whereas the share of rough diamonds was at 4 per cent.