With the beginning of the import
of rough diamonds for export production in the early 1960s, the Indian diamond
industry experienced revival and resurgence. Within a few decades, diamond
exports surpassed the expectations of the industry watchers.
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,
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,
FINANCEMAN ASSOCIATES acknowledges the use of various
printed and electronic media for compiling the content, ideas and statistics on
the gems and jewellery industry presented on this web
page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their
spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of
published text and statistics that are in the public domain. The place of
jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai,
Copy Right © 2007 FINANCEMAN ASSOCIATES