Hasmukh Adhia, Secretary Financial Services, Ministry of Finance, Government of India, speaking on the second day of the World Diamond Conference handed out both praise and criticism to the diamond industry.“This industry has a large contribution to make when it comes to generating employment,” he said. “However, it has shown a negative  growth or not much growth. Where other industries have had an average growth rate of 10.19%, the diamond industry has just 1.2%.”

He noted that the gross NPAs have also gone up considerably in the sector, and as a result of the actions of some fly-by-night operators, the trust of the banks, vis-a-vis the industry had been shaken.  “This is an industry where trust is the foundation,” he said. Further, he stressed that it was clear that this problem had been created only due to the actions of a few, but had impacted the entire industry and asked the industry and bodies like the GJEPC to work at restoring  the trust.

“There has been some defreezing in the relationship (between banks and the industry) thanks to the efforts put in by GJEPC,” Adhia said.  “They have held two banking seminars and this has helped re-establish communication and trust.”

He felt there was a good opportunity for bankers in the diamond sector.  He concluded by spelling out the Governments view: “We are committed to supporting this industry as far as possible.”