The Hindu Business Line : `FDI, jt ventures welcome in diamond sector'

SPARKLE FOREVER: The Union Minister of Commerce & Industry, Mr Kamal Nath, and the Botswanian President, Mr Festus Mogae, at the International Diamond conference - Mines to Market 2005 - in Mumbai on Tuesday. — Paul Noronha

Mumbai , May 24

THE Commerce Ministry is working closely with the domestic gems and jewellery industry to develop an international trading centre for diamonds, Mr Kamal Nath, Union Commerce and Industry Minister, said.

Addressing the two-day International Diamond conference - Mines to Market 2005, he said: "Considering that we are the largest purchaser of rough diamond in the world, there is no reason why India should not have a diamond trading centre at par with the centres currently in Belgium, Israel and Dubai.

"The Government will extend all possible help to develop its infrastructure. We hope to have this established in the near future."

Mr Kamal Nath said the Ministry had set a merchandise export target of $92 billion for the current financial year 2005-06. Exports touched $80 billion in 2004-05.

"This year, we will continue to grow our exports and major sectors are fruits and vegetables, processed foods and leather," he toldpresspersons.

"There has been a phenomenal growth in in the gems and jewellery exports over the years. From a modest figure of barely $25 million 30 years ago, it has grown to $15 billion a year today.

"It now accounts for 18 per cent of out total exports, and is next only to textiles as a foreign exchange earner," Mr Kamal Nath said.

"The Government would encourage FDI and joint ventures between Indian entrepreneurs and businesses abroad in sectors all along the diamond chain - in exploration, mining and sourcing; in cutting and polishing; in jewellery designs and manufacturing; and in exports, sales and marketing," Mr Kamal Nath said.

India's world market share of cut and polished diamonds was 92 per cent by pieces, 80 per cent by caratage and only 55 per cent by value.

"We are quite open to the idea of entering into economic co-operation agreements with countries, especially the countries of Africa, that ensure the supply of rough diamonds to India, while also bringing value and investment in other areas (such as transport, communications and infrastructure) to supplier countries," he said.

Last year, Botswana, a largest producer of rough diamonds in the world, exported over $2 billion worth of rough diamonds.

"Botswana is as independent today on this one single commodity as virtually any country has ever been on any one export product. In other primary producer countries (Canada and Russia), such an output would represent only a small portion of the total value of their exports," Mr Festus G. Mogae, President of Botswana, said at the seminar.

Mr Bakul Mehta, Chairman of Gems and Jewellery Export Promotion Council (GJEPC), said the council would set up a forum to keep trail of natural diamonds and gain consumer confidence

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