A top official from a global industry body today said there has been considerable improvement in consumption worldwide on the back of increased demand from Brazil and China.
In what can bring cheer to the country's diamond trade, a top official from a global industry body today said there has been considerable improvement in consumption worldwide on the back of increased demand from Brazil and China.
"The recession had hit us hard but we would end 2010, 20 per cent lower than what we did in 2007 which is fairly good. Demand has been steadily rising from Brazil and China as people are consuming more," president of the World Federation of Diamond Bourses, Avi Paz, told reporters in Mumbai.
The year 2007 was the best for global diamond industry during which United states had directly consumed 50% of the total polished diamonds, he said.
In 2008, the demand had fallen marginally as the meltdown started in September but 2009 was the peak of the slowdown which saw demand falling by 50% of 2007 levels, Paz said.
Though US' share has fallen, demand from emerging market economies like Brazil, China and India are providing succour to the international trade, Paz said after the inauguration of the Bharat Diamond Bourse BDB in Mumbai today.
The fall in global demand last year had led to stress in India, one of the biggest manufacturers of diamonds in the world. Several units in the Surat region had shut down, rendering thousands jobless.
Situated in central Mumbai's Bandra Kurla Complex, BDB is said to be the world's largest bourse with all the essential facilities - cutting, polishing, trading, banking and customs - under a single roof.
The 2-million square feet facility spread across 20 acres is expected to catapult the Indian diamond trade to become the biggest in the world.
Paz said India will have to be more liberal when it comes to the tax regime and cited the case of import duties on polished diamonds asking for it to be taken away.
Union commerce and industries minister, who was present for the inauguration along with his cabinet colleague Murli Deora and chief minister of Maharashtra Ashok Chavan, said that the government of India is taking steps to promote the trade which has high employment potential and accrues in valuable foreign exchange.
The government is mulling to open four more gems and jewellery design institutes to train people, Sharma said. There is only one institute engaged in the activity currently, he said.
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