1] With the visit of the Chinese jewellery delegation to key regions like Antwerp , India and Israel in the recent past, do you think China will overtake India in the cut and polish segment? Does size of the Diamond really matter when it comes to better technology combined with cheap Labor?

China is poised to be a large cutting centre of Diamonds. But I feel that they would concentrate more on manufacturing of Jewellery which has more added value. They are already making nice affordable jewellery and the factories in Panyu are more focussed on that.

2] If China can build a cut and polish industry for its own consumption [poised to become the largest jewellery consumer] why can't it become the worlds biggest cutting and polishing center for Diamonds?

I am not saying it can't. But having a choice it may be wiser to produce the end product (Jewellery) for their large market.

3] If Indian manufacturers set foot on Chinese shores in the cut and polish segment, will there be an unemployment crisis in the Indian industry?

Yes, it may result into a drop of manufacturing activites at home and create unemployement in this sector.

4] What is the Indian Diamond industry doing to sustain the leadership status in cut and polish segment or to counter Chinese growth in this segment and will we see cut and polished stones imported from China for Indian consumption?

The only advantage for the cutting sector in China is their disciplined labour backed by manufacturer- friendly labour laws If we want to continue being the leader in this sector we need to ease our labour laws and encourage setting up of large factories. We have on several occasions in the past raised this issue and have requested the GOI to relook into the factory and labour laws and make them industry friendly. We are not against the protection of worker's basic rights etc. but too much of protectnism hurts production at times when these rights are misused.

5] Any other comments to safeguard the Indian cut and polish industry.

Having reached the numero uno position in the world, India should now be the World's Trading Hub for Diamonds. This can only be acheived if international players also set up their offices here in India. For this they would need an environment currently prevailing at competitive Diamond trading centres. We have asked for a presumptive taxation system for this high vaue, large turnover industry. The Government had formed a high level committee to study the tax system prevailing in Israel and Belgium which made several recommendation. If these along with industry's suggestions are implemented, India can become the world's hub for Diamonds.

prev next