Indian gem and jewellery industry to strengthen ties with Russia

Gems and Jwellery Export Promotion council organized World diamond congress in Delhi in association with World Diamond mark Foundation with the support from the ministry of commerce and industry. Indian Prime Minister Narendra Modi and President of Russian Federation Vladimir Putin jointly inaugurated the function.

India and Russia are natural diamond partners,and setting up of these zones would help to attract global diamond firms. India’s rough diamond imports jumped 12 percent to $16.72 billion. Russia is the world’s largest diamond producer, while India is the world’s biggest centre for cutting and polishing of rough diamonds. India exports cut and polished diamonds worth $20 billion in a year. While diamonds and precious stones contribute only about 1.3 percent of Russia’s GDP, the gems & jewellery sector of India contributes 6 to 7 percent of the country’s GDP. The diamond industry provides employments to thousands of people.

Narendra Modi Proposed to Russian President Vladimir Putin that Russian diamond mining companies like Alrosa should have direct long-term contracts with more Indian companies and trade directly on the Indian bourse. The deal will allow a direct supply of diamonds to the Indian diamond industry, allowing smaller companies to directly access diamonds from the source.

At present India’s diamond and cutting industry receives diamonds from Antwerp, Dubai, Tel Aviv, London, New York and Hong Kong, through middlemen. Antwerp trade is now run mainly by Indians. While most of rough diamonds from Russia come to India, less than 20 percent comes directly to India.

India's gems and jewellery industry had a market size of Rs US$ 40.58 billion in 2013, and is expected to reach US$ 81.61-86.51 billion by 2018.The focus on diamonds marks a shift in previous annual summits between India and Russia that had been dominated by strategic cooperation, big defence deals and major energy agreements.