GJEPC strives to find a recovery path for India’s diamond industry post COVID-19

After months of disruptions due to COVID-19, the Indian diamond industry has begun showing signs of a gradual recovery in the diamond cutting centres and jewellery units in SEZs, as demand gradually picked up in global consumer markets. With confidence returning to the resilient Indian diamond industry, the Industry leaders are taking all steps to bring the industry back to its former position of the world’s diamond manufacturing and trading hub.
On 17 August 2020, The Gem & Jewellery Export Promotion Council (GJEPC) of India organized a virtual meeting under the UNCUT 2020 Webinar series. Speakers including Paul Rowley, Executive Vice-President, Diamond Trading De Beers Group from London, Evgeny Agureev, Deputy CEO, ALROSA from Moscow, Mrs Rupa Dutta, Economic Adviser, Ministry of Commerce & Industry, Government of India from Delhi, Sanjay Shah, Convener, Diamond Panel Committee, GJEPC from Mumbai participated live with Colin Shah, Chairman, GJEPC moderating the hour-long discussion.
Numerous issues faced by the diamond industry were discussed to find solutions collectively.
With GJEPC Chairman Colin Shah spearheading the discussion, cooperation was sought from the major miners, the Indian government’s support was also pointed as the “need for providing a clear picture of the financial strain on the diamantaires, especially the MSMEs and also pointing out the voluntary ceasing of rough imports by the industry members to bring balance to the overall inventory of rough and polished stones.” Colin Shah addressed both the mining companies’ officials, asking them of the steps their companies intend to take in terms of easing their clients’ purchasing terms during this challenging times.
Offering support to the Indian clients, Paul Rowley of De Beers expressed his company's readiness to give necessary help. ALROSA’s Evgeny Agureev too agreed that his company is well aware of the situation and will go all out to support the rough buyers in all possible way.
To provide a perspective on the Indian diamond industry, Colin Shah asked Sanjay Shah, convener, Diamond Panel for his views on the Indian diamond industry. Sanjay gave a clear picture of the low demand situation as well as the price pattern in the market right now, adding that demand would dip to 30 to 40 per cent during the coming festive season in India as gold demand is always higher than diamond.
Colin Shah also requested the Central Government’s Commerce Ministry Economic Advisor Mrs Rupa Dutta to look into the matter of the current tax structure that was impeding miners to execute direct supply through SNZs; as well as the depletion of bank finance to the industry members. While promising all support from the government to find a solution to the issues, Mrs Dutta, however, reminded that as the industry/product come under luxury sector, the diamond industry should also work with integrity and exercise self-prudence and transparency in doing business.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished