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IS THE DRAGON GULPING THE ELEPHANT IN DIAMOND SECTOR?
Hemant Shah

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”?

I firmly believe that "SHIFT HAPPENS". And so will be the case in diamonds and any other product for that matter. But excellence is hard to achieve and it is very time consuming. A position of leadership cannot be achieved by just having the infrastructure, but the right ATTITUDE. Also, to topple over the existing leader and gain the number one slot is possible with not only the right resources but the right attitude and more importantly if the current leader allows someone to take that position. India has the advantage of being the first leader in this segment and will not be easy for anyone to topple that position. However, in China, we have a worthy competitor and one that is very focused once they set sights on a certain goal.

Hemant Shah

I believe it is up to the Indian Industry and entirely in its power to retain the top slot that we have achieved over the past many years.

What we need is an industry that is THINKING, INNOVATING AND CONTINUOUSLY RE-INVENTING itself. If we keep doing this, no one can beat us. We have what is required and that too already established and well in the groove. If we do the right things, in the right manner, and with the right approach, I do not see China taking over this top slot from us. China has had the advantage of creating expertise by the sheer numbers of CZs they have been polishing and also Indians who have worked with China are satisfied with the results they have had in China as far as diamonds go. Yes, I do agree that size matters, the size of the stones and there is always a balance that has to be achieved between technology and automation. I think India has both. One challenge I see is that India is dependent on external resources (non Indian) for the technology aspect, which could prove to be a big disadvantage.

2] 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. we are already facing the crisis with the recession. This will be compounded by the advent of other cutting centers.

3] 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?

I am afraid that the Indian industry is not really doing enough to sustain the leadership. One of the major challenges is that we as an industry are really traders at heart and not wealth creators. We do not have the investment mentality and patience to raise an industry where the returns are not immediate. We have grown this industry to the majestic level, but then those were different times, the exchange between the USD and Indian Rupee was a major contributor to our growth. We have not been able to restructure ourselves as a business that can work in today’s times and conditions.  I think we missed the boat when we did not take up the CZ cutting business... our cutters are great with diamonds. Like every other product, Chinese diamonds would come into India. India scores very high on THE QUALITY AND SERVICE.

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

What we need is an industry that is THINKING, INNOVATING AND CONTINUOUSLY RE-INVENTING itself. If we keep doing this, no one can beat us. If we do the right things, in the right manner, and with the right approach, I do not see anyone overtaking this top slot from us.

 

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"India not doing enough to sustain leadership"
Hemant Shah