Diamond Sectoral Report

Welingkar Institute of Management Diamond, Gem and Jewelry

W elingkar R esearch

C entre

SECTORAL REPORTS 2005-06

SECTOR - DIAMOND

This report belongs to WRC and it is for internal use only 1


A REPORT ON

DIAMOND SECTOR IN INDIA

(2005-2006)

SUBMITTED BY:

Pooja Shah

Sneha Girap

Sumegha Rao

Pooja Wadha



INDEX

1. Geographic Spread Of Gems & Industry

2. Gems & Jewelry Industry: Forefront Of Globalization

3. Tremendous Potential For Exports

4. Developments In The Gold Market

5. Hallmark Of Gold Jewelry

6. Features Of Indian Diamond Industry

7. Categories Of Rough Diamonds

8. Retail Industry For Diamonds

9. Current Scenario For The Diamond Industry

10. Exports Of Diamonds

11. Future Outlook Of The Diamond Industry

12. Socio-Economic Contribution Of Indian Diamond Industry

13. Swot Analysis

14. Statistics Of The Industry

Policies.

Trade Policy

Industrial Policy

Tariff & Non-Tariff Policy

15. World Trade

16. Various organizations for gems & jewelry





GEOGRAPHIC SPREAD OF GEMS & JEWELLERY INDUSTRY

Gold jewellery making is spread throughout the country with every village having a family of goldsmiths. The diamond processing industry has spread from the State of Gujarat, which accounts for almost 80% of the diamonds processed in India, to other States. Surat, Ahemedabad and Bhavnagar are the diamond centres in Gujarat. Many diamond processing units have been set up in Mumbai in Maharashtra. There are also diamond processing units in Trichur in Kerala, Coimbatore in Tamil Nadu, Jaipur in Rajasthan and also in Goa. Mumbai continues to be the main trading centre for diamond exports. Ninety-three per cent of diamond exports are dispatched through Mumbai airport (see Table - 2).

India’s exports of cut and polished diamonds in caratage are processed in India. In value terms, India’s share is about 50% in world exports of cut and polished diamonds. The expansion in the mining of rough diamonds in various countries and the increase in world trade in cut and polished diamonds and diamond studded jewellery are attributed to the growth of the diamond industry in India during the last four decades.

Table - 2: Port-wise Exports of Gems and Jewellery (US $ In Million)Port of Export 90-91 95-96 99-00 00-01

Mumbai 2803.85 5067.97 7585.92 7106.26 New Delhi 81.31 176.83 240.79 297.03 Ahmedabad 0.13 0 0 0 Jaipur 80.91 104.72 162.95 164.94 Chennai 6.25 23.15 19.57 20.50 Calcutta 0 0.68 50.36 53.88 Bangalore 0.91 40.58 49.83 48.44 Cochin 0.52 3.15 3.18 3.00 Surat 0 0 1.15 46.69 Coimbatore 0 0 8.66 13.70 Hyderabad 0 0 13.63 12.71 Sales to Foreign Tourists

0 0 8.98 12.34

Total 2973.88 5417.08 8145.02 7779.49



GEMS & JEWELLERY INDUSTRY: IN THE FOREFRONT OF GLOBALISATION

In the gems and jewellery industry, the cottage-based diamonds processing and jewellery making units compete with modern factories using state-of-the-art machinery and computerised operations. Modernisation and technology absorption through capital goods imports have given a cutting edge to both diamond processing and jewellery manufacture in India. As a step in operational integration, more and more diamond manufacturers have set up jewellery manufacturing units as well, creating an invaluable synergy in the gems and jewellery industry.

The Indian gems and jewellery units have set up a worldwide network of offices in Antwerp, New York, London, Tokyo, Hong Kong, Singapore, etc. One can find the offices of Indian gems and jewellery units in every hotspot on the diamond industry map of Europe, Japan, USA, Israel, South East Asia and the Middle East.

The phenomenal growth in gems and jewellery exports is a record for among the large Indian export sectors. In fact, the gems and jewellery industry presents itself as a perfect case study for discussing how to build competitiveness of Indian industries. The diamantaires and jewellery makers and their devoted and skilled artisans have shown that even an unorganised industry can achieve international competitiveness. The Indian gems and jewellery industry was the first one to absorb and assimilate the true spirit of globalisation by integrating itself with the world gems and jewellery industry.

INDIA'S GEMS & JEWELLERY: SHINING EXAMPLE OF COMPETITIVENESSThe gems and jewellery industry provides a shining example of achieving international competitiveness. Gems and jewellery exports from India were modest at Rs. 2 crore in 1960-61 and Rs. 22 crore in 1966-67, the year in which the industry's export promotion body, The Gem & Jewellery Export Promotion Council (GJEPC), was set up. The exports of the commodity group ‘gems and jewellery’ more than doubled to Rs. 45 crore (US$ 59 million) in 1970-71. The years thereafter were all milestones in the growth of exports.Table - 1: India's Net Exports of Gems and Jewellery(US $ In Million)Items 90-91 95-96 99-00 00-01 01-02Cut & Polished Diamonds 2641.01 4661.9 6647.82 6186.70 5971.91Coloured Gem Stones 115.75 147.32 204.92 203.36 182.64Gold Jewellery 203.01 569.16 1087.37 1149.95 1166.80Pearls 4.54 5.74 4.01 2.58 2.63Non-Gold Jewellery 8.2 24.53 48.58 56.09 64.33Synthetic Stones 0.25 3.55 2.62 1.63 0.83Costume Fashion Jewellery

1.13 4.85 5.96 9.65 0

Sale To Foreign Tourists 13.52 9.56 8.98 12.34 0Sub-Total 2987.41 5426.61 8010.26 7622.30 7389.14Exports of Rough Diamonds

0 31.46 134.76 157.19 142.15

Total 2987.41 5458.07 8145.02 7779.49 7531.29Source: The Gem & Jewellery Export Promotion Council (GJEPC), Mumbai (The source for all the Tables, unless otherwise specified is GJEPC)



Each decade witnessed leaps in exports, with the figure rising to about Rs. 25,790 crore (US$ 6.131 billion) in 1998-99. This represented a growth of 573 times in gems and jewellery exports as compared to the growth of 92 times in the country’s total exports from Rs. 1,535 crore (US$ 2.031 billion) in 1970-71 to Rs. 141,604 crore (US$ 33.641 billion) in 1998-99. The later figures show that gems and jewellery exports increased further to US$ 8.145 billion in the year 1999-00. In dollar terms, the exports figures were lower at US$ 7.779 billion in 2000-01 and US$ 7.731 billion in 2001-02 (see Table - 1).

The gems and jewellery industry, representing more than 7000 exporters, had a share of 11% in world exports and a share of 18% in India's exports in 1998-99. Over 70% of the world.

TREMENDOUS POTENTIAL FOR EXPORTS

EXPORT OF GOLD JEWELLERY FROM INDIA

The exports of gold jewellery increased to Rs. 1888 crore, representing 10.48% of India's gems and jewellery exports in 1995-96. The exports were Rs. 89 crore accounting for about 4% of the country's gems and jewellery exports in 1986-87. There has been further growth in gold jewellery exports to Rs. 2636 crore in 1996-97, Rs. 3097 crore in 1997-98 and to Rs. 3445 crore in 1998-99. This represented an almost doubling of gold jewellery exports during three years.

Indian hand-made jewellery has a large ethnic demand in various countries with sizeable Indian emigrant population such as the Middle-East, South-East Asian countries, USA, Canada and so on. With imported or domestically processed studdings (diamonds and precious/semi-precious stones) and findings (jewellery components), Indian machine-made jewellery industry will also generate demand from non-ethnic jewellery markets abroad.

The unique advantage of India for the manufacture of diamond-studded gold jewellery is the availability of small commercial quality cut and polished diamonds. Had it not been for India’s polished diamonds, studded jewellery would have remained a prerogative of the affluent. With the small commercial quality diamonds, of which almost 100% are at present processed in India, it is possible to manufacture moderately priced studded gold jewellery for world markets. However, this advantage has not been exploited by India. Other countries import cut and polished diamonds from India to manufacture studded gold jewellery. It is an anomalous situation that whereas India exports Rs. 15,501 crore worth of polished diamonds, its share in studded jewellery exports is very negligible.

In fact, many new jewellery manufacturing centres have come up in Hong Kong, Singapore and Thailand, besides the traditional centres in the USA and Europe. These centres prospered by exporting studded jewellery using Indian-cut small commercial quality diamonds. At the same time, the Indian jewellery industry stagnated without exploiting this unique advantage.



Table - 9: Exports of Gold Jewellery and Imports of Gold Bars (US $ In Million)

Description 90 -91 95-96 98-99 99-00 00-01 01-02

Exports 203.01 569.16 846.15 1087.37 1149.95 1166.80 Imports 138.97 347.87 394.80 438.79 497.08 543.41 Value Addition 64.04 221.29 451.35 648.58 652.87 623.39

Table - 10: India's Exports of Gold Jewellery - EPZ-wise(US $ In Million) Description 90 -91 95-96 98-99 99-00 00-01 01-02

Total Export of Jewellery 203.01 569.16 846.15 1087.37

1149.95

1166.8

% of Zones to Total Exports

25.95 47.82 51.58 51.29 47.88 43.36

Jhandewalan 8.11 0 0 0 0 0 SEEPZ 44.58 227.74 406.16 525.29 507.47 504.25 MEPZ 0 0.95 1.58 2.44 2.52 1.68 NOIDA 0 43.47 28.71 30.03 40.59 0 DTA 150.32 297 409.7 529.61 599.37 660.87

Table - 11: Exports of Gold Jewellery from India to Major Markets (US $ In Million)Countries 90-91 96-97 98-99 99-00 00-01

U.A.E. 33.98 105.69 139.07 168.22 230.13 U.S.A. 42.56 86.21 436.55 598.60 646.21 U.K 67.99 65.16 80.34 98.21 102.10 Kuwait 4.32 12.55 21.63 11.22 13.31 Germany 0.00 0.00 25.48 27.30 19.49 Hong Kong 1.92 22.60 43.97 36.49 37.58 Singapore 2.69 20.97 19.77 30.87 39.59 Others 7.54 33.63 63.83 97.17 69.88 Belgium 0.00 0.00 10.28 28.09 8.18 Bahrain 0.00 0.00 12.15 5.79 2.37 Return Consignments 0.00 0.00 -6.92 -14.59 -18.89Total Exports 161.00 346.81 846.15 1087.37 1149.95

DEMAND FOR GOLD JEWELLERY

Hardly 5% of the demand for gold for fabrication in jewellery in India is for exports. The balance 95% are for domestic sale of gold jewellery. Many socio-economic factors are responsible for the insatiable demand for gold jewellery in India.

Gold jewellery is an important item of personal and family wealth in India, which is bequeathed and passed on to sons and daughters. Every marriage, out of an estimated 5 to 6 million marriages every year in India, involves the gift of a minimum of 30 to 50



gms of gold jewellery. There are other occasions such as the birth of a child, name-giving ceremony, etc., when gold jewellery is gifted.

Gold and gold jewellery are also regarded as an investment to fall back upon during financial crises. Gold and gold jewellery can be easily converted into cash, either through sale or through pledging for taking loans. Saving and investing in gold and gold jewellery can be done in fragments and piece-meal, in contrast to real estate properties. This convenience suits small savers and investors in urban and rural areas.

The prosperity of the rural rich get converted into investments in gold and gold jewellery. Therefore, India is one of the biggest market for gold jewellery. The vast and growing domestic market for gold jewellery provides the base for expanding export production. This base consists of 25,000 licensed gold dealers and 450,000 certified gold smiths spread in over 600,000 villages of this sub-continent. They have imbibed in them centuries old traditions in jewellery making that can provide millions of design ideas for a resurgent Indian gold jewellery exporting industry.

India has tremendous potential, not yet exploited, for jewellery exports. The leading gems and jewellery exporters believe that what has been achieved in diamond exports can be achieved in jewellery exports too. India has many natural advantages to accomplish this. India has, at present, perhaps the largest artisan force for making jewellery in the world, about 25,000 licensed gold dealers and 450,000 certified goldsmiths spread throughout the country. Practically, every village boasts of a family of goldsmiths, having a very long tradition of jewellery making.

ECONOMICS OF GOLD IN INDIA

The economics of gold is enmeshed in several socio-economic problems in India. For instance, the smuggling of gold, drug trafficking, foreign exchange leakage, black market in foreign currencies, under and over-invoicing in exports and imports trade, unaccounted incomes and wealth, black or parallel economy and tax evasion are issues in one way or other linked to the purchase, sale and holding of gold and gold jewellery in India. Since gold forms part of the reserves of the Reserve Bank of India, it has implications for money supply and price levels.

The prohibition on the import of gold existed in India ever since 1947. The Gold Control Order 1963 and the Gold Control Act 1968 contained tight controls on the gold-related activities. However, the Gold Control Act failed in curbing the domestic demand for gold jewellery. The insatiable demand for the yellow metal has continued to grow. The Gold Control Act also failed to control the smuggling of gold. The Act placed hurdles in the export production of gold jewellery in India, when countries such as Italy were riding ahead in world gold jewellery exports.

The Gold Control Act placed severe restrictions on goldsmiths, gold dealers and gold jewellery exporters. The quantitative restrictions did not permit large quantity production for satisfying overseas orders, which are usually large. The Act did not allow a certified goldsmith to receive more than 100 grams of standard gold for manufacturing jewellery. A Certified Gold Smith was not allowed to possess a stock of more than 300 grams of primary gold at any time. The quantity of primary gold in the possession of a licensed dealer was limited to between 400 gms and 2 kg., depending on the number of artisans employed. There existed a legal ban on transactions between one dealer and another.



The Act also required gold dealers to operate from licensed premises only. This restriction was a hurdle to exports as foreign buyers could not visit widely scattered places of manufacture for inspection and buying.

The Gold Control Act was abolished in 1990, the year in which the Government of India had to transfer 40 tonnes of gold to London and swap for foreign exchange to tide over the country’s balance of payment crisis. India had hibernated during the gold control era and missed the opportunities for gold jewellery exports while even smaller Asian countries like Thailand and Malaysia could record quantum jumps in gold jewellery exports. The prospects for gold jewellery exports from India have now brightened.

After the abolition of the Gold Control Act, the Government introduced further reforms. Import of gold was allowed on payment of customs duty. Subsequently, the import of gold was brought under open general licence (OGL) by designated agencies. The designated agencies for the purpose are Minerals and Metals Trading Corporation of India (MMTC), State Bank of India (SBI), State Trading Corporation (STC), Handicrafts and Handlooms Exports Corporation (HHEC), Bank of India (BOI), Indian Overseas Bank (IOB), Canara Bank, Allahabad Bank, Bank of Nova Scotia and Standard Chartered Bank.

These measures have created ample supply of gold for export production. Those exporters availing zero duty status under replenishment scheme for exports will continue to get gold under the old schemes. What is now required is to help Indian jewellery price competitive in the international markets. The following steps will help the growth of gold jewellery exports: availability of gold for export production through the eligible agencies at international prices, permission to import of gold under OGL by all those who hallmark their jewellery (authenticate the purity of gold) and the introduction of uniform sales tax in all the States.

Table - 12: Consumption of Gold in Various Countries in 2000 (Tonnes)India 855.2USA 387.4Saudi Arabia 221.0China 207.5Turkey 207.0Gulf States 157.6South Korea 120.5Egypt 119.7Pakistan 119.1Indonesia 106.6

Source: World Gold Council



DEVELOPMENTS IN GOLD MARKETS

International price of gold reached a peak of US$ 585 per troy ounce in 1980-81. Since then the price has been on the decline. The fall was quite steep since 1997. Gold price fell by 15% in 1997 and further by 8% in 1998. During 1999, price fell from US$ 285/troy ounce in January 1999 to US$ 261/troy ounce in June 1999. In mid-2001, the price moved around US$ 268.

The steady fall in gold price was attributed to the following factors: drop in demand for gold in India, South East Asia, China, Saudi Arabia and the Middle East due to economic slow-down and currency crisis and off-loading of gold stocks by Central Banks in Belgium, Netherlands, Australia, Austria and Argentina. On May 7, 1999 UK announced plans to sell gold. The first lot of 25 tonnes of gold was sold by Bank of England on July 6, 1999. The Swiss authorities indicated their plans to sell 300 tonnes of gold.

There is a slight turnaround in gold prices. The decision by the European Central Bank (ECB), representing 11 national Central Banks, the Bank of England and the central bank of Switzerland to cap their sales to a total of 400 tonnes over the next 5 years has contributed to an improvement in the price of gold. The ECB affirmed that gold would remain an important part of global monetary reserves.

The International Monetary Fund (IMF) which had decided to sell about 312 tonnes of gold to finance the debt relief package for the poorest nations has now decided to re-value the gold stocks rather than selling them. Further, the economic situation in India and South East Asian countries has improved. The demand for gold and its price is again looking upwards.

Table - 13: Gold Usage in Karat Jewellery (Tonnes)

1996 1997 1998 1999 2000Italy 439.0 500.0 535.0 511.0 509.0India 427.8 594.0 682.6 657.0 655.0USA 152.4 159.0 170.2 178.2 181.8Japan 74.0 55.0 39.0 37.0 37.0Turkey 140.7 168.1 159.0 115.0 177.0Germany 37.2 35.9 34.3 32.6 30.3Other Countries 1367.8 1577.4 1339.7 1428.0 1403.2China 189.0 227.0 169.0 159.0 155.0Soviet Union 25.3 29.0 27.0 28.0 33.7Total 2853.2 3345.4 3155.8 3145.8 3182.0



GOLD MARKET GAINS STRENGTH IN INDIA The World Gold Council (WGC) has registered increased demand for gold in India in the first quarter of 2001. After two years of slow growth, i.e. 2.9% in 1999 and 1.96% in 2000, the World Gold Council statistics display that there has been a strong revival in the demand for gold.

Analysts perceive that the more ritualistic and ornamental uses of the metal are attracting Indians to the gold mart. If they had been purchasing gold primarily for the price appreciation, the steady erosion in its value may have deterred them by now. The World Gold Council has perceived from the data registered in the first quarter of 2001 that the jewellery demand accounted for approximately 90 per cent of the total gold consumption.

The World Gold Council accorded that the growth in demand in 2001 in India was due to the season of marriages and festivals, especially in the southern part of India. The world demand for gold for fabrication of jewellery amounted to 3,281 tonnes in 2000. India topped the list with a demand of 855 tonnes. Major part of the jewellery manufactured in India is meant for domestic consumption.

GLOBAL PRICES OF GOLD HIT SEVEN-YEAR HIGHS

As reported by Economic Times, global prices of gold hit seven-year highs on September 25, 2003 and the ripple effect is being felt on the domestic bullion markets as well. Since time immemorial gold has been considered a 'safe haven' but the Indian mode of investment in this metal in the form of jewellery is flawed.

With prices of gold hitting new highs, the metal has found renewed interest as an investment option. Those who invested in the metal during the Iraq war would have made handsome gains today. Unlike popular belief, investing in gold in the form of jewellery is highly unprofitable. The reason is the hefty making charges and the high probability of impurities. Most Indian investors prefer to buy their gold from the local jeweller who claims to sell 22K gold though the actual purity could be as low as 15K.

Therefore, if one is looking to invest in the metal from an investment point of view then it makes more sense to buy gold coins or bars from reputed banks like ICICI or State Bank or organisations like MMTC. They offer 5gm or 10gm 24K gold coins that come with a certification of 99.99% purity. These coins have been introduced by the banks for retail purposes; the coins are inserted in the purity certificate and then laminated. The advantage of buying gold from these banks and in the form of coins or bars is that one can be sure of the purity and the same can be sold back to the bank or other buyers minus any making charges.

ICICI Bank is going a step further and is launching a product called the Gold Account. This account will work like a savings account for the investor. The investor can deposit money into the account as per convenience and that money will be converted into gold by the bank as per the rate applicable for that day. The investor will be allowed to withdraw minimum 5gm gold.



Another product, which has not yet been introduced in India, is a Gold Certificate where the investor can buy gold from the bank and is issued a certificate stating the quantity of gold held. This will lead to paperless gold and will encourage gold to be used as an alternate currency. This product has taken off in South-east Asian Countries. But till recently Indian Banks were not allowed to hedge their gold portfolios this product was not launched. With forward contracts finding flavour in India, we could soon see this product in the Indian market as well.

It is always advisable to diversify one's portfolio and gold can be an attractive investment avenue with an advantage of easy liquidity. The idea is to invest in a pure and simple form of gold if the aim is to maximize returns.

Table - 14: Demand for Gold (Tonnes)Year India World1996 508 27801997 737 30541998 815 27141999 839 32842000 830 32642001 840 3218 Source: World Gold Council

Table - 15: World Production of Gold (US $ In Million)Countries 1990 1995 1999 2000

South Africa 605.1 522.4 449.5 428.3 USA 294.2 319.0 341.9 355.2 Australia 244.2 253.5 299.5 296.4 Canada 167.4 150.3 157.9 155.0 Brazil 84.1 67.4 54.1 52.6 Philippines 37.2 29.4 32.8 34.7 Other Countries 323.2 550.1 798.1 788.4 Russia 0.0 0.0 138.4 154.9 China 0.0 0.0 156.3 162.3 North Korea 0.0 0.0 6.6 6.6 Mongolia 0.0 0.0 11.4 12.7 Others 0.0 0.0 121.5 126.1 Total 1755.4 1892.1 2568.0 2573.2



HALLMARKING OF GOLD JEWELLERY

GUARANTEE AGAINST IRREGULAR GOLD QUALITY

According to a report by the Times News Network (August 5, 2002), ‘Hallmarking’ for ensuring purity of gold jewellery for the benefit of the customer still remains a far cry in a country which boasts of a thriving gold jewellery trade through a huge chain of over 20,000 jewellers in the country. With its 11 hall-marking centers spread across the country (two are likely to be added in the near future), the Bureau of Indian Standards (BIS) has granted around 390 licences as on May 31, 2002 to the jewellers in the entire country for hall mark quality of gold purity, disclosed official sources.

The reasons are obvious. Though very much prevalent in the West, hallmarking has not taken off in India. The consumer movement in this country is still in infancy and confined mostly to urban areas. Moreover, lack of education and consequently quality awareness has been minimal. Aware of this, BIS has introduced a special incentive to licensee jewellers that at the time of renewal of licence, a concession of Rs 10,000 is given in renewal fee for the next operative year, in case more than 5,000 jewellery articles are hallmarked in the previous operative year. This is part of BIS's efforts to propagate the significance of hallmarking apart from taking help of consumer activists and bodies. Introduced in India on the UK standards, it is yet to pick up, confess BIS officials.

Disclosing the statistics of a recent sample survey conducted by BIS by collecting gold jewellery samples from shops in eight cities of the country, namely, Delhi, Mumbai, Jaipur, Chennai and Hyderabad, Kolkata, Ahmedabad and Bangalore revealed that 88 per cent of the samples were found to be of jewellery items which did not conform to the claimed standards by jewelers. In some cities like Hyderabad, Jaipur and Kolkata, virtually 100 per cent of the samples failed to conform to the claimed standards. Average purity of failing samples was less by 11.09 per cent. Lowest purity sample was short by as much as 38.6 per cent. As many as 43 per cent of he samples were short in purity by more than 15 per cent.

Lest it should be accused of bias, BIS involved the leading consumer activists from the respective cities for its survey. It further revealed that an average impurity percentage in gold jewellery beyond declared norm was about 5-6 per cent which means the consumer of gold jewellery was losing on an average Rs 230 per gram. The BIS officials say it will cost only Rs 5 per gm of jewellery to get assurance of jewellery by hallmarking. For an item of 10 gm, while customer has to pay around Rs 50 to test the quality of the gold, he is likely to lose Rs 230 on an average due to impure quality.While at present the hallmarking results are made available in 48 hours, BIS has projections to bring down the time to 24 hours in near future. Hallmarking is emerging as a guarantee against irregular gold quality and a stamp of international quality levels which indicate that gold articles in a jewellery shop have been evaluated and tested at an official assaying and hallmarking centre. The centre certifies that the metal used conforms to national and international standards of fineness, and purity, says the public awareness literature released by BIS. Indians are the world's largest gold consumers with approximately 800 tonnes of gold being transacted annually in the jewellery form. The problem seems to be of infrastructure. While in India today there are over 20,000 jewellers, there are only 13 laboratory assaying and hallmarking centres in the country.



Table - 16: Gold Usage in Karat Jewellery (Tonnes)Country 1990 1995 1998 1999 2000 Italy 381.0 446.0 535.0 511.0 509.0 India 238.6 400.6 682.6 657.0 655.0 USA 126.6 148.3 170.2 178.2 181.8 Japan 109.5 78.0 39.0 37.0 37.0 Turkey 130.9 110.4 159.0 115.0 177.0 Germany 49.8 38.9 34.3 32.6 30.3 Other Countries 1070.8 1345.6 1339.7 1428.0 1403.2 China 0.0 204.0 169.0 159.0 155.0 Soviet Union / CIS 0.0 20.2 27.0 28.0 33.7 Total 2107.2 2792.0 3155.8 3145.8 3182.0 FEATURES OF INDIAN DIAMOND INDUSTRY

Diamond is an 'export-led' and 'value added' industry. The industry depends entirely on imported raw material, namely, rough diamonds, generally referred to in trade parlance as “roughs”. The diamond exporters have developed a global outlook, as theirs is an export-oriented and import-dependent industry. In order to excel, they have to overcome necessarily competition from manufacturing and cutting centres in other countries.

Value addition takes place in the process of cutting and polishing. The objective of cutting and polishing is to remove the impurities and to impart the desired geometrical shape and surface finish such that the light entering the diamond is fully reflected back to the eyes of the viewer. Technologically and skill-wise, India is well equipped to face global competition.

Table - 5: Import of Cut and Polished Diamonds by Major Markets and India's Share(US $ In Million & %)Major Markets 1990 1997 1999

U.S.A. 3384.5 6945.3 9161.25India's share % 24.65 23.63 26.03

Belgium 2977.8 4147.5 3675.6India's share % 17.59 18.72 23.54

Israel 455.9 862.9 1453.72India's share % 11.12 23.95 24.84

Hong-Kong 1607.8 2738.8 2687.1India's share % 22.79 40.16 63.73

Japan 2534.9 1434.3 1291.61India's share % 20.92 21.95 34.14



Every diamond is different and every diamond deal is different. Purchase or sale of diamonds, whether roughs or cut and polished, involves sub-optimal decisions, i.e., decisions made without all the relevant information. Therefore, purchase decisions carry an inherent risk. It is because of the vagaries and uncertainties involved that the trade, more particularly where smaller sizes (below 0.25 carat) and promotional goods or commercial grades are concerned, has adopted the unit weight, namely, carat as the accounting unit for the purposes of stock accounting, pricing, purchases and sales. All transactions are conducted in terms of carat. A carat is equal to one-fifth of a gram or 200 milligrams.

Of the total world exports of 27.25 million carats of cut and polished diamonds, India dominated with 19.21 million carats in 1995-96. In terms of value, India with an export of US$ 4.7 billion accounted for 43% of the world diamond exports of US$ 10.8 billion in 1995-96. The share in value terms has risen to 50% in 1998-99.

Table - 6: World Mine Production of Rough Diamonds(Million Carats)Description 1990 1997 1999 2000World Production 106.70 118.64 111.06 110.18Australia NA 36.00 29.78 26.20 Zaire 24.00 23.30 22.00 9.00 Botswana 17.30 17.85 21.35 24.65 Russia 15.00 13.40 16.20 20.50 South Africa 8.50 9.90 9.73 10.58 Namibia 0.80 1.44 1.61 1.50 Ghana 0.20 0.74 0.50 0.50 Central Africa Republic 0.50 0.60 0.45 0.45 Siera Leone 0.70 0.50 0.60 0.35 Liberia 0.30 0.20 0.20 0.17 Tanzania 0.00 0.13 0.23 0.32 Angola 1.30 5.34 3.62 1.61 Guinea 0.10 0.75 0.55 0.45 Other Countries 2.00 3.67 4.24 13.90



VALUATION OF DIAMONDS

The valuation of diamonds in the jewellery industry is based on the 4 C’s of diamonds. One need to know about the 4 C’s before they start buying diamonds. The 4 C’s are cut, colour, clarity and carat.

1. CUT

The cut of a Diamond is the only property, which is totally dependent on man. Although often overlooked, cut is actually one of the most important aspects to consider when choosing your diamond. A Diamond cutter analyzes the rough diamond, and has to determine how to extract the most beauty and most profit out of the rough stone.

The cut of a diamond has the most effect on its sparkle, or brilliance. Whatever, may be the shape, a well-cut diamond is better able to reflect light. A diamond’s ability to reflect light determines its display of fire and brilliance. Diamonds are usually cut with 58 facets or separate flat surfaces. These facets follow a mathematical formula and are placed at precise angles in relation to each other. This relationship is designed to maximize the amount of light reflected through the diamond and to increase its beauty.

The width and depth have the greatest effect on how light travels within the diamond, and how it exits in the form of brilliance. Well Cut-When a diamond is cut to proper proportions, light is reflected from one facet to another and then dispersed through the top of the stone. Reflects nearly as much light as the ideal cut. Within the well-cut standards there are diamonds coming under the category of Ideal, Excellent and Very Good.



Deep Cut- When the cut of the diamond is too deep, some light escapes through the opposite side of the pavilion. This makes the diamond to appear dark and dull.

Shallow Cut – This includes all diamonds that do not meet the proportion standards of a fair cut. When the cut of the diamond is too shallow, light escapes through the pavilion before it can be reflected. This causes the diamond to loose its brilliance.

The cut, or proportions, of a diamond is measured in percentages relative to the diameter of its girdle. The girdle diameter of each diamond is always considered 100 %. For example, the girdle of a diamond measures 10 millimeters ( 100%). The table measures 6.1 millimeters. The total depth measures 6.9 millimeters. The diamond would be described as having a table of 61% and a depth of 69%. The table and depth percentages are the key to determining good proportions.

SHAPE V/ S CUT

The shape and cut of a diamond are not the same. There is a difference between them. The cut is as to how a diamond is being polished as to the refraction or quality of the diamond. Whereas the diamond can be given any shape depending upon the quality as to which would fetch highest return on it.

round emerald princess radiant oval pear

marquise heart



2. COLOUR

The color of a diamond has the second biggest impact on its price, after carat weight. Acting as a prism, a diamond can divide light into a spectrum of colors and reflect this light as colorful flashes called fire. Just as when looking through colored glass, color in a diamond will act as a filter, and will diminish the spectrum of color emitted. The less color in a diamond, the more colorful the fire, and the better the color grade.

Most diamonds have at least a trace of yellow or brown bodycolour. The best colour for a diamond is no colour. Diamonds allow light to be reflected and dispersed as a rainbow of light. This light dispersion or colour flash has no effect on the technical grading of colour. Diamonds are graded in a scale of colours ranging from colourless to light yellow, “D” through “Z”. this body colour may be caused by the presence of trace elements, such as nitrogen, within the atomic framework of the carbon crystal.

The Laboratories only grade diamonds, which are unmounted, or “loose”, and they do so under special light. Once a loose diamond is mounted on a ring, even the trained professional cannot always tell the difference between, say a “D” color and an “E” or “F” color diamond.

3. CLARITY

The clarity of a diamond refers to how clear, or “clean” the diamond is. The more “clean” the diamond, the higher the price. Most diamonds have “imperfections” in them. The clarity scale is a measure of the severity of those imperfections or “inclusions” as it is known in the trade.

For example, a deep break in a diamond which is not that visible when you look at the stone face-up, could sometimes have a greater impact on the clarity of a stone, than a small black crystal which you can see very clearly face-up.

Diamonds that are absolutely clear are the most sought-after and therefore the most expensive. But many diamonds have inclusions — scratches, trace minerals or other tiny characteristics that can detract from the pure beauty of the diamond. To determine a diamond’s clarity, an expert views it under 10 power magnifications.

Flawless Diamonds (FL) : No internal or external flaws.

Internally Flawless Diamonds (IF): No internal flaws. Very rare and beautiful diamonds.

Very Very Slightly Included Diamonds (VVS1, VVS2): Very difficult to see inclusions under 10x magnification. An excellent quality diamond.



Very Slightly Included Diamonds (VS1, VS2): Inclusions are not typically visible to the unaided eye. Less expensive than the VVS1 and VVS2 grades.

Slightly Included Diamonds (SI1, SI2): Inclusions are visible under 10x magnification, and may be visible with an unaided eye. This is a good diamond value.

Included diamonds (I1, I2,I3 ): These stones have inclusions which range from eye visible to very easily seen to the naked eye.

An “eye-clean” diamond — one that has no inclusions visible to the unaided eye has the best clarity. An excellent value, diamonds of this clarity are much less expensive than IF-or FL-grade diamonds and typically do not contain visible inclusions that detract from the beauty of the diamond.

4. CARAT

Most people compare carat weight to size. The larger the diamond the more it weighs. The weight of the diamond is expressed in carats.

When diamonds are mine the size of a diamond has the biggest impact on its price. The metric carat, which equals 0.20 gram, is the standard unit of weight for diamonds and most other gems. If other factors are equal, the more a stone weighs, the more valuable it will be.

Here are several ways to express 1 carat:1 ct.200 milligrams1/5 gram100 points4 grainer (not often used in retail environment)

Large gems are discovered much less frequently than small ones, which makes large diamonds much more valuable. In fact, diamond prices rise exponentially with carat weight. So, a 2-carat diamond of a given quality is always worth more than two 1-carat diamond of the same quality.It is very important not to mistake carat weight as referring to the dimensions of a diamond. It refers to weight only. Why the distinction? Because weight can hide in different parts of the stone. You can have a) well-cut, b) deep, or c) shallow Diamonds. Some may appear larger than others due to its cut.

Prices of diamonds are expressed in the trade as a price per carat. So when we say that the Carat Weight has the biggest impact on the price of the stone, we refer to the unit price per carat, not just the overall price of the whole stone.

For Example: A diamond of weight 0.25 carats costs $1,000 per carat. $1000 x 0.25 = $ 250/ stone.

It is very common for people to disregard the other C’s in favor of getting the biggest possible stone they have budgeted for. Although size does matter, it is important for the quality of the stone to high.



INDIA: LARGEST IMPORTER OF ROUGH DIAMONDS

Rough diamonds are mined in more than 20 different countries including India. India’s annual production is negligible at around 19000 carats. Prior to 1986, the annual world production of rough diamonds, including all categories, was around 60 million carats. With the opening up of Argyle mines in Western Australia, the annual production has doubled to about 115 million carats in 1995.

India imported about 78% of the total world production of rough diamonds in 1995, i.e., 89.9 million carats, out of the world production of 115.5 million carats. Between 1971 and 1995, world rough production increased at a compound annual rate of growth (CARG) of 4.11%, whereas India's imports increased at a rate of 15.09%. In recent years too, India's imports increased at a rate of 2.39% as compared to the decline in world production of rough diamonds at the rate of 0.55% between 1996 and 1999.

Table - 7: Rough Diamonds - Major Suppliers to India

(US $ In Million)Description 90 -91 95-96 98-99 99-00 00-01

Belgium 1237.6 2068.56 2388.28 3167.75 2535.68 U.K. 636.92 860.12 658.01 983.57 1130.27 Israel 72.96 171.92 207.89 414.04 310.37 U.S.A. 13.61 8.28 9.77 14.18 17.55 Switzerland 0.26 0 17.38 21.14 12.25 Sri Lanka 0.58 0 0 0 0 Hong-Kong 0.41 137.23 118.62 292.03 323.18 Singapore 0 5.17 0 0 0 Thailand 1.84 0.48 0.02 1.94 0.9 Others 0.58 0.87 2.73 3.08 8.98 U.A.E. 0 0 21.32 49.33 167.81 Exp. of Rough Diamonds 0 0 -80.84 -134.76 -157.19Total 1964.76 3252.63 3343.18 4812.30 4349.80

CATEGORIES OF ROUGH DIAMONDS

Rough diamonds used for processing into cut and polished diamonds are generally broken down into the following three categories:

Roughs Category Weight (%)

Value(%)

Gem 15 78Near Gem 40 20Industrials 45 2



Gem category represents the high-end with high yield and value. Near gems are diamonds of poor quality that can be cut and polished but with a very poor yield. India has specialised in processing near-gems and near-industrials.

PRICES OF ROUGH AND POLISHED DIAMONDS

Table - 8: Average Price of Rough Diamonds Imported and Polished Diamonds Exported(US $ per carat)Description 90 -91 95-96 98-99 99-00 00-01 01-02 Export 317 243 188 201 207 182 Import 53 36 22 36 43 33

Until India emerged as a diamond processing and exporting country, only gem quality roughs were cut and polished. Therefore, limited volume of diamonds were used in jewellery. For instance, in 1970 the diamonds content in the jewellery sold at retail counters worldwide was only 2.54 million carats. India’s exports in that year was hardly 0.50 million carats. The world consumption rose to about 15 million carat by 1992. India’s exports in 1992 amounted to 9.759 million carats.

After the abolition of the Gold Control Act, the Government introduced further reforms. Import of gold was allowed on payment of customs duty. Subsequently, the import of gold was brought under open general licence (OGL) by designated agencies. The designated agencies for the purpose are Minerals and Metals Trading Corporation of India (MMTC), State Bank of India (SBI), State Trading Corporation (STC), Handicrafts and Handlooms Exports Corporation (HHEC), Bank of India (BOI), Indian Overseas Bank (IOB), Canara Bank, Allahabad Bank, Bank of Nova Scotia and Standard Chartered Bank.

These measures have created ample supply of gold for export production. Those exporters availing zero duty status under replenishment scheme for exports will continue to get gold under the old schemes. What is now required is to help Indian jewellery price competitive in the international markets. The following steps will help the growth of gold jewellery exports: availability of gold for export production through the eligible agencies at international prices, permission to import of gold under OGL by all those who hallmark their jewellery (authenticate the purity of gold) and the introduction of uniform sales tax in all the States.



Table - 12: Consumption of Gold in Various Countries in 2000 (Tonnes)India 855.2USA 387.4Saudi Arabia 221.0China 207.5Turkey 207.0Gulf States 157.6South Korea 120.5Egypt 119.7Pakistan 119.1Indonesia 106.6

Source: World Gold Council

RETAIL INDUSTRY FOR DIAMONDS

Retail outlets in the world

On average, approximately 23 percent of diamond jewelry’s retail value is actual diamond value. After the diamonds are processed in the factory they are sent to the major diamond markets or bourses where they are being exported or sold to various jewellery-making firms. The main markets are: -

ISRAELApproximately 1,200 diamond companies are located in Ramat Gan in the Israel Diamond Exchange complex. The 4 buildings - Shimshon, Maccabi, Noam and the Diamond Tower - are located on two parallel streets, Jabotinsky and Bezalel, and are connected to one another through a series of internal pedestrian bridges. Ramat Gan is approximately a ½ hour drive from the

Ben Gurion International Airport.


http://www.diamond-key.com/companies/israel





BELGIUMIn approximately 1,500 diamond offices are located in Antwerp in 3 well-protected, inter-

connected streets, Hoveniersstraat, Schupstraat, and Rijfstraat. Some of the buildings on Hoveniersstraat also have entrances from Pelikaanstraat. Antwerp’s annual turnover in rough, polished, and industrial diamonds is more than $20 billion dollars.

INDIA

In India, the offices are located, in Mumbai (Bombay). The Prasad Chambers, Panchratna Building, Hermes House, and Dharam Palace are located in the general area of the Royal Opera House near the Roxy Cinema within a radius of less than half a mile. Others are located around the city and are easy to find with a driver. The major manufacturing center is in Surat in the state of Gujurat.

London, the center for the distribution of rough diamonds for more than 300 years, is the home of the CSO (Central Selling Organization) and the brokers who represent De Beers. Sight holders, both manufacturers and dealers in rough, meet in London, once every 5 weeks, 10 times a year, to inspect their diamond allocations. Both Hong Kong and Taiwan, important diamond trading centers on their own, are significant thresholds to the Far East markets including Korea and China.

In New York, most of the offices are located in what is known as the Diamond District - between Fifth Avenue and the Avenue of the Americas - from 46 th to 48th Streets. New York is considered the “gateway” to the U.S. market and is also a manufacturing center for large sizes.

CURRENT SCENARIO THE DIAMOND INDUSTRY

Today, India is the leader in importing, processing and exporting of diamonds. India has a virtually complete dominance in small sized diamonds. India now accounts for nearly 55 percent of world net exports of cut & polished diamonds in value terms, 90 per cent in terms of pieces and 80 per cent by caratage. No other export segment of the country has such a significant share in the world market. India accounts for over 70% of the world exports of cut and polished diamonds in caratage. In other words, roughly 7 out of every 10 diamonds set in jewellery worldwide are from India.



In the current scenario, apprehensions have been expressed in some quarters that a number of the small producers would find it difficult to sustain operations on current margins, which would lead to some turmoil. Industry analysts believe that as the industry matures and takes its next step forward, many of the smaller independent producers may find themselves being absorbed by the larger players. The number of firms may reduce in the process, but not the size of the industry, nor even the levels of activity.

Much has been said about the rising bank debt of the Indian industry and there were a couple of disturbing cases of bankruptcy. Yet overall the industry has ridden out the threat and as analysts point out, with manufacturing on the rise and the number of banks providing finance to the trade on the upswing, it is only natural that debt figures will show an increase as well. What is significant however and a sign of the maturity of the players is the process of self-regulation adopted by the industry, in the form of a pact on trading norms. Signed by all major trade bodies in the country, these will be implemented through a consensus in the trade and interaction with the banks to encourage them to accept these as well has also got underway.

Diamonds-an unorganized sector The diamond sector in India is totally organized. There are companies of all sizes i.e. small, medium and big. The reason for companies not going public is that the business requires a lot of secrecy and it is also one of the reasons that it is impossible to find as to who is the biggest player in the industry. There are around forty-five companies having turnover or more than Rs.100 crore and around one hundred seventy five companies having turnover between 10-100 crore. Most of these companies are export oriented. Besides this there are many small companies trading in the local markets, which are either manufacturers or just traders. Some of the big players in the industry are B. Arunkumar, Mahendra Brothers, Lakhi Diamonds, Impex group etc. It is not possible to know as to which is the biggest player as none of the companies issue balance sheets, the business is full of secrecy thus there is no information given out about the company.



EXPORT OF DIAMONDS

After the diamonds have gone through the process of rough to polish, they are either sold in the domestic market or exported to various countries. Majority of the Indian diamonds processed are exported and very less are sold in the domestic market. The largest importer of Indian diamonds is U.S. Following the current trend in the market the exports are expected to up to $10 billion by the year 2007. Diamonds are the second largest foreign exchange earner for the country.

India, which currently exports $ 7.5 billion worth processed diamonds, interestingly, India has also moved up the value chain with a growth of 15% in the per carat value of exports. During the preceding 12 months the average price per carat of India’s exports rose from US $ 194 to US$ 224.The financial year 2003-04 closed with India’s exports touching US $ 11.98 billion, achieving a 31% overall growth. Whether it is an individual company or a country, whether it is an established force or an upcoming one, successes can only be gauged by one test: the trial of fire by the markets. Whether you succeed or fall by the wayside will be determined by one factor: the worth of your product.



FUTURE OUTLOOK OF THE DIAMOND INDUSTRY

Way back in the mid 1990s, when the Indian diamond industry first claimed its rightful status as the world’s largest manufacturer of polished stones, there were more than a fair share of skeptics, who refused to accept what the numbers were saying. Not any more. In fact industry analysts are now voicing their opinion that many of the Israeli sight holders have actually been manufacturing their goods outside the country over the past two years and that Israel was being used only as a transit point in the supply chain.

The entire diamond world knows that India has a virtually complete dominance in smalls, and that the country has for long been the world’s leading manufacturer of cut and polished diamonds. But behind the scenes, the India centre has been moving confidently to take over a sizeable chunk of the manufacturing of medium and larger stones from other competing centers, particularly Israel.

Some manufacturers took a step forward in the mid-‘90s and entered jewellery manufacturing. India has a definite cost advantage and our strength is diamonds today. Profit margins are also higher in the competitive retail business. Selling cut and polished diamonds yields margins of just 5 per cent to 10 per cent but selling finished diamond jewellery pieces to wholesaler’s overseas yields margins of between 20 per cent to 40 per cent. And retailing overseas offers margins of between 40 per cent and 60 per cent depending on the value of the diamonds.

But there are challenges ahead. One is the lack of skilled manpower and technology to create and produce designs for the international markets. The council is hoping to tackle this by setting up a training institute. Indian firms will have to tightly control costs and prices.

SOCIO-ECONOMIC CONTRIBUTION OF THE INDIAN DIAMOND INDUSTRY

The Indian Diamond Industry has proved its mettle in international competitiveness simultaneously; it has also made significant socio-economic contributions:

Employment generation with low investment

The investment required for creating employment in the diamond processing and jewellery-making units is quite low. Employment generation in other industries call for heavy investments.

Hard currency foreign exchange earnings

The countries to which India exports gems and jewellery are among the hard currency areas. The industry contributes continuously to the country’s foreign exchange reserves.

Pollution-free industry

Diamond processing and jewellery manufacture do not pollute the environment, neither air nor water.



Environmental friendly industry

Being an import-based industry, it does not deplete natural resources and also leaves the flora and fauna in tact.

Assists in urban decongestionThrough decentralized location, the gems and jewellery industry helps in the removal of unemployment in the rural sector, prevention of migration to cities and the avoidance of slums in the urban areas.

Low Power Consumption

The gems and jewellery manufacturing processes do not aggravate the country’s energy problems.

SWOT ANALYSIS OF THE INDIAN DIAMOND INDUSTRY

Strength Weakness Opportunity ThreatAvailability of cheap and skilled labour

Less emphasis on quality

New markets Entry of China and Thailand in diamond sector

Experience Low productivity Colored diamonds Conflict Diamonds

Pricing and inventory management

No contracts Scope in domestic market

Use of child labor

Supportive government policy

Lack of standardization

Outsourcing of diamond jewellery

Anti – social activities and threat of terrorism

STRENGTHS

Availability of cheap and skilled labor

India has a large labor force and this has made the country the biggest diamond-cutting center for small roughs. Indeed, were it not for Indian workers, many of these small diamonds would be put to industrial use rather than jewelry. India’s strength lies in the two million highly skilled workforces in the country in the gem & jewellery sector, out of which one million are exclusively engaged in export production, who virtually carve exclusive fancy stones. All the processes, right from sorting to polishing requires analytical skills, which cannot be relied upon with machines.

Experience

Experience plays a very important role in the success or failure of a business because of the diversity and unique features of diamonds. It requires a lot of experience to diagnose as to what you would obtain after polishing a diamond. It is not necessary that two



diamonds looking similar are same. They can be different too. Experience is needed to understand the following features of rough diamonds, which are to be bought for further processing by any diamond processing company.

They are: - Toughness: as to how are diamonds and as to how much effort will be required to

polish them. Shade: rough diamonds look just like stones and only experience could tell as to

what would be the shade of the diamond. Purity: it is also important to examine the purity of the diamond.

Pricing and inventory management

The diamond industry virtually offers the entire range of products, a steady supply of raw materials and a state of the art manufacturing facilities is something that no other center will be able to match. India’s USP in the days to come is to achieve all round quality at low price.

Supportive government policy

Since the diamond industry is one of the key contributors to the foreign exchange of our country the government has played a very supportive role to this sector. Incentives like Diamond Dollar Account (DDA) and SEZ packages and lowering of import duties are some examples. The government is always trying to provide a helping hand for the promotion of the diamond industry.

Low cost of production

The cost of production of diamonds in India is much less as compared to other countries. This is due to the availability of skilled and cheap labour force in the country. The cost of production of each piece of diamond increases with an increase in the size of the diamond. The government is also playing and important role by providing incentives which lowers the overall cost of production of diamonds. WEAKNESS

Less emphasis on quality

The share of India in medium and large sized diamonds is comparatively less as when compared with other countries is because of less emphasis on quality. It will have a huge impact on large sized diamonds. Therefore, to remain competitive in the world market Indian businessmen will have to improve the quality of their diamonds.

Low productivity

The labor force in India is less productive as when compared with China, Thailand, Sri Lanka. This may be due to reasons like long hours of work, uneasy work environment and no friendly atmosphere created. The workers therefore are not motivated to work therefore resulting in low productivity. There will have to be an increase in productivity for the diamond sector to flourish.



No contracts

There is no legal proof of any domestic trade related to diamond transactions in India. Everything in India works on word-of-mouth. There is no legally binding contract between the people who do business. Though payment of a high amount is to be made by cheque many transactions are done with cash.

Lack of standardization

Though India is the largest exporter of diamonds in the world , the diamonds are not standardized. A same size, colour, weight diamond may mean different things to businessmen around the world. The Diamond Trading Company should take steps to ensure that the diamonds are standardized so that the dealers and clients are not cheated at any point of time.

Insolvency

The rate of insolvency is very high in the diamond industry. Payments are not received from clients even after years of expiry of the credit period. There is a gap created. The rich businessmen are becoming richer, and the poor are becoming poorer. The newly entered businessmen are also finding it difficult to survive in the market. One really needs to work hard to earn a living and to survive in the market place.

OPPORTUNITIES

New markets

The leading importer of Indian diamonds is US. This is the only country that has been having a majority share in the world market. The Indians can also explore countries like Europe and Latin America. There is also increasing demand in South East Asian countries. Using advertising campaigns and promotion and marketing can do this.

Colored diamonds

One of the major opportunities for the Indian diamond industry is colored diamonds. The clients now prefer colored gemstones and diamonds instead of the regular white color. Even other countries in the world are looking up to India for supply of colored diamonds. They are the latest trend in the market.

Scope in domestic market

Since diamonds are expensive they seem to be possessed by the richer section of the society. The lower class prefers gold jewelry. They consider diamond and risky and very expensive and very hard to handle. Therefore the other classes can be made aware of the benefits of diamonds by advertising and promotion campaigns.



Outsourcing of diamond jewellery

The retailers worldwide have shown keen interest in sourcing diamond jewelry requirements from India because of easy availability of diamonds. It has been over a decade and a half since Indian jewelry manufacturers began marketing their products.

THREATS

Entry of China and Thailand in the diamond sector

The Indian diamantaire perceives a growing threat from China as a diamond processing and cutting centre. Unless the government backs the industry up. Else, India may lose its status as the world’s largest diamond processing centre. An increasing number of diamond processors from Israel and Belgium, and even India, are setting up facilities in China for a variety of reasons. The reasons range from a cheap and disciplined labour force to high economic growth in the country resulting in a significant increase in potential consumers in the high-income segment within China, and also to the quality of Chinese workmanship which is steadily improving.

China has all the strengths of India—cheap economic labour, infrastructure and a welcoming government. It also offers attractive labour union terms and export-friendly policies. While it might not affect an industry that has taken 30 years to grow, it is definitely on the cards. As the industry gets more competitive, companies see themselves becoming increasingly efficient to compete. Companies are finding this impossible in a milieu of strict labour laws that inhibit cost cutting measures such as rationalization.

Conflict diamonds

Another threat to the industry is the recent trade in Conflict Diamonds also called ‘Blood Diamonds’ which have become the thriving industry’s Achilles’ heel. Conflict diamonds are those mined and the income from their sale help finance arms buying and funding activities of terrorist groups. The three named areas have been Angola, Sierra Leone and Congo. A great fear in the industry is that due to a mere 4 per cent of illegitimate trade, the rest might feel immense ramifications. While there is definitely a moral issue to be resolved immediately, there are also other ramifications for an industry that thrives much on consumer perception. This could very well happen to the diamond trade.

Use of child labor

Small boys, sometimes as young as 10 years old, work in hot sheds chiseling roughs which eventually get sold in the fancy shops. Their nimble fingers and sharp eyes enable them to cut these diamonds in remarkable shapes, but while they earn well for these skills many of them find their eyesight getting progressively weaker as they grow older. India processes small diamonds, using traditional labour-intensive methods. About 1.5 million people are employed in the diamond industry, mostly in the unorganized sector.



Anti social activities and threat of terrorism

Antis social activities are on the rise especially in places like Mumbai. Security has become one of the major concerns for the diamond industry. A loss of a packet of diamonds can cause of a lot of money from your pockets. In recent times there are a lot of robberies happening in broad day light without even anyone noticing it. Therefore there should be an increase in security facilities.

Conclusion

Today India is the largest manufacturers of diamonds in the world. We make use of the latest automated machines, technology and tools. Indians have realized the importance of technology in the diamond trade and have upgraded their facilities to a great extent.

There cannot be a control on the amount of rough coming into our country. The polishing and marketing of diamonds has gained more importance. New markets and centers have started emerging and stones similar to small traditional Indian goods types are being polished in China and even in Thailand and Sri Lanka.

India has 55 percent by value, 80 percent by volume and 90 percent by way of pieces. Though this being the current situation it will not be difficult for the industry to grow by five to ten percent in terms of value because of our sizes of firms and our labor force. But a share of larger than seventy five percent will be difficult because of competition from other new markets, the mining companies themselves setting up manufacturing and polishing facilities and the rest of the market consists of high quality and colored diamonds.

Though the Indian diamond market has a large share when compared to other markets, they will have to work hard for maintaining this position and will have to make continuous changes and innovations. The government will have to take steps in stopping illegal activities and threat of terrorism. The diamond industry should also look more into fancy and colored diamonds, which is the latest trend. They should also look into the new shaped diamonds that have been discovered.



Statistics

Industrial Number

POLICIES

Trade Policy

Exporters of gems and jewellery are eligible to import their inputs by obtaining Replenishment (Rep) Licences, Diamond Imprest Licences and Bulk Licences for rough diamond from the licensing authorities. Diamond Imprest Licence can be obtained in advance for import of rough diamonds from any source. Imports of gold , silver and other coin are restricted whereas all other items in this chapter can be freely imported.

Industry Policy

All industrial undertakings of gems and jewellery are exempt from obtaining an industrial licence to manufacture. They are required to file an Industrial Entrepreneur Memoranda(IEM) in Part 'A' (as per prescribed format) with the Secretariat of Industrial Assistance(SIA), Department of Industrial Policy and Promotion, Government of India, and obtain an acknowledgement. No further approval is required. Immediately after commencement of commercial production, Part B of the IEM has to be filled in the prescribed format.

Industrial undertakings are free to select the location of a project. In the case of cities with population of more than a million (as per the 1991 census), however, the proposed location should be at least 25 KM away from the Standard Urban Area limits of that city

This report belongs to WRC and it is for internal use only

Industrial Code Description 14297 Mining of felspar and silica

minerals including quartz, quartizite and fuch quartzite.

3691 Manufacture of jewellery and related articles

36911 Manufacture of gold jewellery : gold, silver and other precious metal jewellery; precious and semi-precious stone jewellery; gold and silver articles including presentation coins but not the coin used as a legal tender

36912 Diamond cutting and polishing and other gem cutting and polishing

36913 Minting of currency coins

33


unless, it is to be located in an area designated as an "industrial area" before the 25th July, 1991. Relaxation in the aforesaid locational restriction is possible if an industrial license is obtained as per the notified procedure. Small scale units are, however, exempt from the locational restrictions.

Entrepreneurs are required to obtain Statutory clearances relating to Pollution Control and Environment for setting up an industrial project.

100 per cent Export Oriented Units (EOUs) and units in the Export Processing Zones (EPZs)/Special Economic Zones(SEZs), enjoy a package of incentives and facilities, which include duty free imports of all types of capital goods, raw material, and consumables in addition to tax holidays against export.

FDI upto 100 per cent is allowed through the automatic route for all manufacturing activities in Special Economic Zones (SEZs).

The Development Commissioners (DCs) of Export Processing Zones (EPZs) /Free Trade Zones (FTZS)/Special Economic Zones (SEZs) accord automatic approval to projects where

(a) Activity proposed does not attract compulsory licensing or falls in the services sector except IT enabled services; (b) Location is in conformity with the prescribed parameters;(c) Units undertake to achieve exports and value addition norms as prescribed in the Export and Import Policy in force; (d) Unit is amenable to bonding by customs autorities; and (e) Unit has projected the minimum export turnover, as specified in the Handbook of Procedures for Export and Import.

Processed foods are a deli censed industry. The declicensed undertakings, however, are required to file an Industrial Entrepreneur Memoranda (IEM) with the Secretariat of Industrial Assistance (SIA). No further approval is required. No restrictions are imposed regarding the location of the industrial undertaking. Certain items belonging to the are reserved for small scale industry.

Tariff-non-tariff PolicyThe import duty on most of the items under this group is 35.2 to 56.832 per cent. This includes a basic duty and a special additional duty. However, in case of certain items like dust and powder of precious or semi-precious stones, waste and scrap of precious metal, gold and silver coins, imitation jewellery etc. attract higher duty.



WORLD’S TRADE

Top Ten Destinations of India's Export for Gems & Jewellery

India's Cumulative Export

I.No ProductApril'2002 - August'2002

April'2003 - August'2003

1 Agate cut 0.9964 2 Agate uncut 0.0064 3 All other semi manufactured forms of silver 0.0379

4Articles of goldsmith's or silversmith's wares and parts thereof of base metal clad with precious metal.

0.0008 0.0004

5Articles of goldsmiths or silversmith's wares and parts thereof of other precious metal, whether or not plated or clad with precious metal.

0.2838 0.7259

6Articles of goldsmith's or silversmith's wares and parts thereof of silver, whether or not plated or clad with other precious metal.

2.5421 2.5976

7Articles of goldsmith's or silversmith's wares and parts thereof, of precious metal or of metal clad with precious metal.

2.8267 3.3239

8Articles of jewellery and parts thereof of base metal clad with precious metal

0.0188 0.0135

This report belongs to WRC and it is for internal use only

RankCountry Name

2000 - 2001 Value (In Million US$)



1 U S A 2746.7212 2647.9774 3379.69512 Hong Kong 1748.3202 1689.3412 1884.8304

3Belgium-Luxembourg

910.7119 865.0038 1028.5247

4 U A E 444.3111 546.4051 666.36785 Japan 387.0294 382.6252 420.17096 Israel 274.1978 258.628 413.90427 Singapore 121.7066 123.9816 260.47338 Thailand 190.8861 238.4102 234.20349 U K 149.1006 174.5455 210.082310 Switzerland 143.3983 121.3638 118.8112Source: DGCI&S

35


9Articles of jewellery and parts thereof of other precious metal, whether or not plated or clad with precious metal.

468.288 495.1496

10Articles of jewellery and parts thereof of silver, whether or not plated or clad with other precious metal.

31.0306 39.0112

11Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal.

499.3374 534.1743

12Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed).

2.3126 3.1407

13 Articles of natural/cultured pearls 0.0025

14Articles of precious or semi precious stones (natural, synthetic/reconstructed)

2.3101 3.1407

15Bangles of base metals whether or not plated with precious metal

1.3307

16Base metals clad with silver, not further worked than semi-manufactured

0.0007 0.0016

17Base metals or silver, clad with gold, not further worked than semi-manufactud

0.0165



18Base metals, silver or gold, clad with platinum, not further worked than semi-manufactured.

0.006 0.0301

19Catalysts in the form of wire cloth or grill, of platinum

0.1814 0.0009

20 Chaloidony cut 0.0034

21 Coin (excl. gold) not being legal tender 0.0026 0.0061

22 Coin. 0.0286 0.008923 Crushed industrial diamonds 0.0013

24Cuff links & studs of base metal whether or not plated with precious metal

0.5774 0.9797

25 Cultured pearls unworked 0.0289 0.086826 Cultured pearls worked 0.3062 1.0984

27Diamond (other than industrial diamond) cut or otherwise worked but not mounted or set

2936.8234

28Diamonds, whether or not worked, but not mounted or set.

2978.6157 3131.736

29 Dust and powder of diamonds 4.1286 2.1213

30Dust and powder of natural or synthetic precious or semi-precious stones.

4.1615 2.1595

31Dust and powder of other precious stones

0.0329 0.0382

32 Emeralds, uncut 0.2066 33 Emerals, cut 9.9028 34 Felspar (moon stone) cut 4.1792 35 Felspar (moon stone) uncut 0.0006 0.912436 Garnet cut 0.7488 37 Garnet uncut 0.0003 38 German silver jewellery 0.1179

39

Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form.

0.0096



40 Green aventurine, uncut

41Imitation jewellery of base metal, whether or not plated with precious metal

16.3318 17.3421

42Industrial diamonds unworked or simply sawn, cleaved or bruted.

0.0351 0.0178

43 Iridium, osmium and ruthenium, other.

44Iridium, osmium and ruthenium, unwrought or in powder form.

45 Jewellery of gold set with diamonds 242.7406 46 Jewellery of gold set with pearls 39.5204

47Jewellery of gold set with precious and semi precious stones other than diamonds

10.6526

48 Jewellery of gold unset 173.605

49Jewellery of platinum group metals unset

1.7354

50Jewellery set with imitation pearls or imitation or synthetic stones

3.3681

51 Manufactures of gold 0.0488 52 Manufactures of platinim group metals 0.0138 53 Manufactures of rolled gold

54Manufactures of silver whether or not plated or clad with precious metal

2.1537

55 Monetary gold 56 Natural (real) pearls unworked 0.0948 57 Natural (real) pearls worked 0.8159

58

Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coin.

3593.4695 3761.7251

59 Natural pearls 0.9106 0.3908

60Non-industrial diamonds unworked/simply sawn cleaved or bruted

16.817 1.4211

61 Non-monetary powder of gold 0.0053 62 Other 3.9541



63 Other articles of precious metal 0.1262 0.1065

64Other articles of precious metal or of metal clad with precious metal.

0.3076 0.1073

65 Other articles of precious metal/rolled gold 0.0093 66 Other Coin 0.026 0.0028

67Other imitation jewellery for personal adornment (other than artware)

6.9835

68Other imitation jewellery of base metals whether or not plated with precious metal

5.2849 9.0093

69Other imitation jewellery of base metals whether or not plated with precious metal

10.4695 7.3531

70Other industrial diamonds whether or not worked, but not mounted or set

0.0294 0.0881

71Other laboratory and industrial articles of precious metal or rolled gold

0.1169

72 Other non-industrial diamonds 2961.6938 3130.2041

73Other non-monetary semi manufactured forms of gold

74Other non-monetary unwrought forms of gold

0.0096

75Other precious stones (e.g.aquamarine, chrisobaryle, topaz etc) uncut

0.2697

76 Other semi precious stones, uncut 6.8214 1.0947

77 Other stone cut (topaz, aquamarine etc) 60.2792

78Other synthetic/reconstructed precious/semi precious stones

0.8072 1.2594

79Other synthetic/reconstructed precious/semi precious stones unworked/simply sawn/roughly shaped

0.1251 0.1519

80 Others 0.0281 81 Others 24.8704

82Otherwise worked other precious and semi-precious stone

66.2071 49.2768

83Otherwise worked rubies, sapphires and emeralds.

13.0532 11.0477

84 Palladium in other forms 0.0829

85 Palladium, unwrought or in powder form. 0.0009

86Parts of article of jewellery of other precious metal, whether or not plated or clad with precious metal

0.0339

87Parts of articles of goldsmiths' or silversmiths' wares of base metal clad wiht

0.0008



precious metal

88Parts of articles of goldsmiths' or silversmiths' wares of silver, whether or not plated or clad with precious metal

0.3884

89Parts of articles of goldsmiths' or silversmiths' wares, whether or not plated or clad with precious metal

0.2212

90Parts of articles of jewellery of base metal (unfinished or incomplete articles) clad with precious metal

0.0045

91Parts of articles of jewellery of silver, whether or not plated or clad with other precious metal

0.2978

92

Pearls, natural of cultured, whether or not worked or graded but not strung, mounted or set; ungraded pearls, natural or cultured, temporarily strung for convenience or transport.

1.2458 1.5761

93 Piezo electric quartz 0.011694 Platinum in other forms 0.0682 0.308995 Platinum in powder form 1.4462 96 Platinum unwrought incl. ingots 0.4612 97 Platinum unwrought or in powder form. 0.4612 0.5223

98Platinum, unwrought or in semi-manufactured forms, or in powder form

0.6123 0.8525

99

Precious stones (other than diamonds) and semi-precious stones, whether ornot worked or graded but not strung, mounted or set; ungrated precious stones (other than diamonds) and semi-precious stones, temporarily strung for convenience of transport.

86.568 65.5109

100Precious stores(other than diamonds) and semi precious stones unworked or simply sawn or roughly shaped

7.3077 5.1864



101 Rhodium, other 0.0209 102 Rhodium, unwrought or in powder form. 0.0213103 Rolled gold jewellery, set or unset 0.0143 104 Ruby and sapphire, uncut 0.0027 105 Ruby and sapphires cut 3.1504 106 Semi-manufactured silver. 0.0517 0.1718

107Sheets, plates, strips, tubes & pipes of silver

0.0139

108Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form.

0.1422 0.2046

109 Silver filligree work 5.6882 110 Silver in powder form 0.0006 0.0329111 Silver jewellery other than filligree,unset 23.3378 112 Silver jewellery set with gems 1.7067

113Sorted industrial diamonds unworked or simply sawn, cleaved or bruted

0.0327

114

Synthetic or reconstructed precious or semi-precious stones, whether or not worked or graded but not strung, mounted or set; ungraded synthetic or reconstructed precious or semi-precious stones, temporarily strung for convenience of transport.

0.9323 1.4229

115Unsorted diamonds whether or not worked,not mounted or set

0.0404 0.0048

116Unsorted industrial diamonds unworked or simply sawn, cleaved or bruted

0.0024

117 Unwrought silver 0.0898

118Waste and scrap of gold, incl. metal clad with gold but excl. sweepings containing other precious metals.

0.0151

119Waste and scrap of platinum, incl. metal clad with platinum but excl. sweepings containing other precious metals.

0.0014

120Waste and scrap of precious metal or of metal clad with precious metal.

0.0404 0.1075

121 Waste and scrap of precious metal, other 0.0253 Currency: US $ Million Source: DGCIS

ORGANISATIONS FOR GEMS & JEWELLERY INDUSTRY

1. THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL (GJEPC)



The Gem & Jewellery Export Promotion Council (GJEPC) is the apex body of the industry in India. Set up in 1966, The Gem & Jewellery Export Promotion Council operates under the supervision of the Ministry of Commerce, Government of India, and elected representatives of the industry. It has nearly 7000 members. The Gem & Jewellery Export Promotion Council has its head office at Mumbai, and regional offices at New Delhi, Jaipur, Surat and Chennai (Madras).

2. GEM AND JEWELLERY COMPLEX WITHIN SEEPZ (SANTACRUZ ELETRONICS EXPORT PROCESSING ZONE)

SEEPZ was initially established with a view to exploit the growing world trade in electronics. It came into being in September 1974 on about 100 acres of land taken on a 99 year lease from the state government of Maharashtra in the Marol Industrial Area, Mumbai.

SEEPZ has a vast commercial, industrial and social infrastructure. Various facilities such as factory space, power, water, in-zone customer clearance, warehousing, communication, canteen, etc. are provided within the Zone.

Although SEEPZ was initially set up for 100% export production of electronics, during 1986-87 the government decided to create a gems and jewellery complex in SEEPZ for the 100% export of gems and jewellery items. Various concessions and facilities have been granted to those who set up production in the zone.

At present 51 gems and jewellery units are in operation. A large number of applications for new units are pending since 1989-90 for want of space. A building is under construction through the self-financing scheme, which will accommodate 32 new projects in the gems and jewellery sector.

Gems and jewellery sector contributes to more than 50% of SEEPZ exports. Taking view of this fact, the government has simplified export procedures wherever possible and several other promotional measures have been implemented.

ZEEPZ jewellery units contributed Rs. 458 crore (54%) to the total gold jewellery exports of Rs. 846 crore from India during 1998-99.



Table - 19: Imports into S.E.E.P.Z. Mumbai and

Exports from S.E.E.P.Z. Mumbai(US $ In Million)Description 90 -91 95-96 98-99 99-00 00-01 01-02IMPORTS: Rough Diamonds 21.93 53.24 23.14 60.61 37.11 46.35 Gold Bars 17.12 64.1 64.52 35.68 25.31 89.46 Stones 1.23 1.01 0.48 1.22 0.73 1.87 Cut & Polished Diamonds 16.59 107.02 135.84 173.88 182.53 210.85 Silver Bars 0 0.7 0.11 0.19 0.46 0.05 Platinum 0 2.97 1.22 10.67 4.84 8.23 Total Imports into ZEEPZ 56.87 229.04 225.31 282.25 250.98 356.81EXPORTS: Cut & Polished Diamonds 27.76 52.04 78.52 29.15 56.79 41.66 Gold Jewellery 44.58 227.74 406.16 525.29 507.47 504.25 Silver Jewellery 0 0 7.12 0 0.51 0.51 Platinum 0 6.59 7.71 7.32 8.13 7.21Total Exports from ZEEPZ 72.34 286.37 499.51 561.76 572.9 553.63 3. TRAINING INSTITUTIONS:

There are several training institutions for imparting training in diamond and gem processing and jewellery manufacturing industry. The prominent ones are listed below:

A) UNDER THE AUSPICES OF GJEPC:a. Indian Diamond Institute, Surat: b. Courses in diamond, Gems and Jewellery and Computers; Established in 1978;

Enrolment: About 350 students.c. Indian Gemmological Institute, New Delhi: d. Gem Testing Laboratory and Gemmology Courses; Established in 1980.e. Gem Testing Laboratory, Jaipur: f. Gem Testing Services, Courses in Gemmology, Technical services to overseas

buyers.g. Jewellery Product Development Centre, Mumbai: h. Short-term courses in Jewellery and video cassettes and other library for free

use.i. Jewellery Product Development Centre, New Delhi: j. Seminars and Workshop-cum-Training programmes for jewellery industry and

technical assistance.



B) PRIVATE SECTOR INSTITUTIONS:

a. S.G. Centre for Diamond Technology, Vile Parle (W), MumbaiThis institution is situated within the campus of Shri Bhagubhai Mafatlal Polytechnic and conducts a comprehensive diploma course in Diamond Technology.

b. Gemmological Institute of India, MumbaiFounded by the Gem and Jewellery Exporters' Association, Mumbai in 1971; Diploma course in Gemmology and Diamond Course, both of which are resident programmes; Correspondence Course in Gemmology, Pearl Course, Jewellery Designing Course; Jewellery Casting Course; gemstones testing through its Gem Testing Laboratory.

INDIAN DIAMOND INSTITUTE (IDI), SURAT

IDI is jointly aided by Ministry of Commerce, Government of India and The Gem & Jewellery Export Promotion Council. IDI is located in Gujarat, which accounts for about 80% of the cut and polished diamonds exported from India. Surat, the ‘Diamond City’, has the largest share in diamond processing among all the diamond processing centres. Over 10,000 diamond units operate in Surat, which accounts for the largest share in diamond industry employment, i.e., 750,000 out of an estimated 800,000. Therefore, it is natural that The Indian Diamond Institute, the premier institution for training for this industry is located at Surat.

IDI provides training, laboratory services, research & development and consultancy services in a wide spectrum of areas related to the Gems and Jewellery Industry.

4. DIAMOND TRADING COMPANY (DTC)

The Diamond Trading Company (DTC), London, established in 1934, is the selling arm for rough diamonds and is a wholly owned subsidiary of Dee Beers of South Africa. DTC functions as a wing of the Central Selling Organisation (CSO). Dee Beers and CSO and the Dee Beers group company based in Switzerland control and regulate the rough and polished diamond markets.

CSO has annual budget of about $200 million for conducting market studies, trade promotion, advertisement and highly emotive and successful publicity campaigns spread out in 30 different countries, including China. CSO ensures market expansion and price stability for the benefits of all the participants in the diamond industry.



Table - 20: C.S.O. Sales of Rough Diamonds(US$ Million) Description 1990 1995 1998 1999 2000 2001

CSO's Sales 4167 4531 3345 5240 5670 4454 India's Offtake 638 747 483 777 995 989

5. DIAMOND PLAZA CUSTOMS CLEARANCE CENTRE

All imports and exports of diamonds, as also other articles in the gems and jewellery group, are subject to appraisal and evaluation by the Customs Department. Each and every export and import parcel is appraised by the Customs Authorities as regards description and value before clearance by them.

Disputes and differences, if any, arising in regard to description or value have to be first settled before the export or import parcel is allowed clearance. To advise the customs in such matters, a panel of experts drawn from the trade has been constituted. This procedure ensures that both imports and exports are done at fair international prices and strictly in terms of the Government policy.

Practically the entire trade is by air transport and both import and export cargoes are carried through specialized Cargo Consolidators (international cargo companies) who arrange for speedy, economical and safe transit and delivery of parcels to notified consignees.

Almost 98% of India’s import of rough diamonds and export of cut and polished diamonds are affected through the city of Mumbai. Therefore, the Government of India agreed in 1985 to set up a specialized Customs Clearance Cell in the “Opera House” area, the “Diamond District” of Mumbai. Ordinarily, Customs Clearance Centers are located at the sea or airports. As an exception, and on 'cost reimbursement basis', the Government of India permitted the setting up of a customs clearance centre for gems and jewellery known as Diamond Plaza Customs Clearance Centre (DPCC).

It is the first of its kind to be set up jointly by the gems and jewellery industry and the Customs Department. DPCC has been functioning effectively within the city of Mumbai under a special arrangement worked out between the gems and jewellery trade and the Government of India. The Centre is run on self-financing basis through income generated through service charges levied on all import and export parcels. The service charge amounts to just 0.01% of the value of the parcels handled. The Diamond Plaza Customs Clearance Centre will shift to the new Bharat Diamond Bourse coming up within the Bandra-Kurla complex in Mumbai.


Documents

Diamond Sectoral Report