Putin's India visit will boost diamond trade: GJEPC

Gems and Jewellery Export Promotion Council (GJEPC) has expressed the hope that Russian President Vladimir Putin's forthcoming visit to India will boost the diamond sector in both the countries. Putin's two-day India visit starts tomorrow.

"India, which is the major diamond polishing hub, and Russia, which is poised to spend significantly in diamond exploration in the future, are natural diamond partners and expected to gain enormously with the direct partnership proposed by the industry. The visit of President Putin to India during the World Diamond Conference is of great significance and we are hopeful that (Indian) government accepts our proposals for direct sourcing and a special notified zone in India," GJEPC Chairman Vipul Shah said in a statement.

Setting up of these zones would help attract global diamond firms to open offices in Mumbai, a major diamond trading hub of the country, besides Surat. The body wants direct selling of rough diamonds from Russian mines to India.

GJEPC in association with the World Diamond Mark Foundation and with the support from the Ministry of Commerce and Industry is organising the World Diamond Conference here during December 11-12.

Putin and Prime Minister Narendra Modi are expected to attend the inaugural function. Russia is the world's top producer of rough diamonds. But the direct selling of rough diamonds from Russian mines to India is less. Most of the diamonds comes through diamond hubs such as Antwerp and Dubai.

GJEPC also said that for the first time ever India will witness a convocation attended by global heads of mines, luxury brands and global diamond organisations such as World Diamond Mark Foundation, De Beers, Alrosa, World Federation of Diamond Bourses, Rio Tinto, Antwerp Diamond Bank, International Diamond Manufacturers Association and World Diamond Council.

It said the MoU on direct sourcing of rough' between Alorsa and India is expected to be signed during the conference.It will give an edge to Russia over other countries such as Dubai and Antwerp, it added.

The bilateral trade between Russia and India stands at USD 10 billion. According to reports, Russia exports USD 4 billion worth of rough diamonds, but currently only about USD 800 million of them go directly to India.