The Indian diamond export industry has been growing at 5 to 6% over the last few years, but has dropped by 8% in 2008/09 when compared to 2007/08 (US$ 13.02 billion to 14.2 billion).This drop has been attributed to the fall in demand in the United States and Europe due to the global economic meltdown.Diamond exports account for over 75% of the total income from the gem and jewellery sector
The Gem and Jewellery Export Promotion Council (GJEPC) of India is looking for ways to compensate for the loss in exports to the US and Europe. The expanding local market for diamonds is promising, so are the emerging markets such as China, the formed Soviet States and UAE.
The (GJEPC) and the all India Gem and Jewellery Trade Association is planning to launch a local campaing to popularize diamond studded jewelry. The campaing budget is US$ 3.2 million. The consumption of local diamond jewelry has been growing at over 100% during the past 5 years.
The GJEPC is also looking for ways of increasing direct trade of gemstones and diamonds between India and China. Presently most of the trading with China is through Hong Kong.
According to Mr Vasant Metha, Chairman of the GJEPC the recession will improve by the end of 2010 once more enabling a 5% growth rate.