Gujarat to become intl centre for diamond trade

Surat, May 5: With Union Government deciding to reduce customs duty on cut and polished diamond imports from five per cent to three per cent, Gujarat is likely to become a major Diamond trading centre, and Surat's profile will change as it processes almost 75 per cent diamonds in the world.

''If Gujarat becomes a trading centre in the future, Surat will shine and will definitely compete with Antwerp, Hong Kong and Dubai,'' traders said and expressed hope that the diamond industry is expected to register an export growth of around 25 per cent. In terms of value, exports in the current year will be over 14 billion dollars.

Diamond traders said out of every 12 diamonds, eleven are processed in India and nine in Surat. After Surat, Ahmedabad is a major diamond processing centre in the country.

Southern Gujarat Chamber of Commerce and Industry president Pravin Nanavati told UNI the duty cut will make jewellery industry more active and help to expand the trade in the city.

''The diamond jewellery manufactured in the city is of the best quality and low cost of labour helps to get a wider market. The cut in the duty will further help to increase diamond trade in the city,'' he said.

According to Nanavati, the scenario is very bright for Indian diamaond industry in the coming days.

''Around 90 per cent of diamonds coming to India are processed here so naturally the city will get a boost from the increased trade volumes,'' Nanavati said.

He said there will be a major demand in the Indian market in the coming years. Mr Nanavati said that the commencement of the functioning of the Surat airport from May 6 will also play a major role in the expansion of the city as a global diamond trade center.

Industry sources say that now most of the diamonds processed in the city are traded through offices based in Mumbai. The development in communication will help to trade most of the diamonds processed from the city itself.

According to a rough estimate, around 30 per cent of the total diamonds traded from Mumbai, will be shifted to Surat in the coming years.

Two major diamond industry parks will be developed in the city - one at Ichchapore and another at Udhna- which will offer a modern atmosphere for the processing and value addition of diamonds.

This will place the city anong international diamond trading cities like Antwerp, Dubai and Hong Kong, says Gem and Jewellery Export Promotion Council president Chandrakant R Sanghvi.

According to another expert in the diamond sector, the new developments will increase diamomd trade in Surat for the year 2007-08, by around 30 per cent.

UNI