Against the backdrop of the President of Russia’s visit to the country to hold meetings with the Indian Prime Minister, taken along with the fact that President Vladimir Putin will be inaugurating the World Diamond Conference being held in New Delhi,  the GJEPC will be working to strengthen its ties with its Russian counterpart and boost trade between the diamond sectors of the two countries.

The two countries are complementary in nature and it is only natural that the two should be partners. Russia is the largest volume producer of rough diamonds; India is the biggest cutting and polishing diamonds. In 2013, Russia produced 25 per cent of total rough diamond produced in carat terms, and 26 per cent by value. The India diamond manufacturing centre has a 65 per cent share of the world polished market by value; 85 per cent in terms of caratage and a stupendous 92 per cent in terms of number of pieces.

Currently, India imports approximately 90 per cent of its rough diamond requirement from trading centres such as EU, Israel and UAE; and only 10 per cent of its rough purchase comes directly from producing countries like Russia, Australia, Canada and Africa. Russia exports 63 per cent of rough diamonds to the European Union and only 16 per cent to India. Alrosa has 37 long-term customers, and only six of them are from India.

In order to improve this position, the GJEPC is hoping to work with the senior representatives from Alrosa, the Russian rough diamond sales company, to work out various ways of increasing trade between the two countries.

First on the list is the signing of an MoU between the India and Alrosa in which GJEPC hopes the current number of six (direct clients) increases.

On the other hand the GJEPC will also – through the proper channels – work towards a Free Trade Agreement for the diamond sector between the two countries; or at the very least a restructuring of the tax on the Russian import of polished diamonds and jewellery.

GJEPC will also familiarise mining companies coming to the Conference about the proposed Special Notified Zone (SNZ). The GJEPC is convinced that such a zone, the first of which the GJEPC would like to put up in the Bharat Diamond Bourse, will greatly facilitate trading and be a boon for all diamond companies in the country. GJEPC hopes that Alrosa will be a regular participant in sales at the SNZs.

 The Conference is being organised by The Gem & Jewellery Export Promotion Council (GJEPC) in association with the World Diamond Mark Foundation (WDMF) and with the support from the Ministry of Commerce and Industry, Government of India.