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India
By Zainab Morbiwala
With the new national government in place, the diamond industry is optimistic that much-needed stability will follow. It is also hopeful that the new leadership will work toward strengthening the gems and jewelry sector in India. Speaking exclusively to Rapaport Magazine, Pankaj Parekh, vice chairman of the Gem and Jewellery Export Promotion Council (GJEPC), said, “We have immense faith in the wisdom and capabilities of the new government and we do believe that over time, the government will work toward the various recommendations we have put forth for boosting the gems and jewelry industry in India.”
GJEPC is on its way to becoming one of the strongest national jewelry associations in the world. GJEPC recently led the Indian delegation at the JCK show, its chairman gave a major address at the show and a number of new initiatives have been announced to increase its global presence.
Dinesh Navadia, president of Surat Diamond Association, speaking exclusively to Rapaport Magazine, said that “I can say with confidence that the sentiments and business witnessed so far this year have been better than what we had in the preceding three years. Overall, the market is picking up.”
In a dramatic development, diamantaires canceled a planned move from Mumbai to Surat after a number of industry organizations — including GJEPC, the Bharat Diamond Bourse (BDB) and the Mumbai Diamond Merchants Association — interceded. Industry objections to the move focused on the fact that the industry at large was not involved in the decision and also on the shortcomings of Surat — it does not even have an international airport — in accommodating a major trading hub. In May, approximately 50 major traders unexpectedly announced they were leaving Mumbai and were making plans to be operational in Surat by the end of 2014.
“This decision of 50 players was made on an individual level and no association or trade body was consulted nor was there any industry consensus on the move,” said Vipul Shah, GJEPC chairman. “We are not against the inception of Surat Diamond Bourse but we want to have a proper road map in place and we want the entire industry involved in the planning.”
Although Surat is a manufacturing hub, it does not have the financial or transportation infrastructure that would be essential in a trading center. “The Surat bourse can be a one-stop solution for any manufacturing needs,” said Shah, “but the trading activities as of now are more suited to be conducted from the Bharat Diamond Bourse in Mumbai.”
In a speech at JCK, Shah said that “With total gem and jewelry sales of $36.33 billion in the year 2013, India is making rapid strides in the global gem and jewelry business.” He detailed India’s leadership position in the industry, explaining that “Diamonds manufactured in India constitute 65 percent by value, 85 percent by volume and 92 percent by pieces of the world diamond production.” Shah further noted that cut and polished diamonds constitute 56 percent of the gems and jewelry export basket and jewelry constitutes 32 percent and that both sectors are growing at the rate of 10 percent annually.
A major announcement in Shah’s speech was that the council has associated itself with the World Federation of Diamond Bourses (WFDB) to help market the World Diamond Mark program, popularly known as WDM. Shah said the cooperative effort with WFDB “will mark the launch of the biggest-ever educational, accreditation and generic marketing activities” for diamonds.
In another outreach, Shah announced in his speech that GJEPC has taken a major step in promoting shared knowledge and expertise between countries by using India’s expertise in jewelry design and manufacturing to help diamond industry colleagues in Africa by building up the Indo-African Diamond Institute in Botswana.
The eagerly awaited comprehensive report on synthetic diamonds in the marketplace has been released and a special committee established to continue monitoring the issue. The Natural Diamond Monitoring Committee (NDMC) consists of representatives from the GJEPC, BDB, All India Gems & Jewellery Trade Federation (GJF), the Gemological Institute of America (GIA) and other organizations in the gems and jewelry sector.” The study spanned eight countries across three continents and took four months to prepare.
The report includes a framework for monitoring synthetics in the industry and for implementing fair trade practices to protect against undisclosed mixing of synthetics with natural diamonds and to ensure full and fair disclosure to the purchaser. It contains very specific proposals to safeguard against accidental or intentional mixing of stones, including greater traceability of goods and stiff penalties for violations.
Article from the Rapaport Magazine - July 2014. To subscribe click here.
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