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Shri Kamal Nath, Union Minister of Commerce & Industry, has said that his Ministry is working closely with the industry to develop India as an International Trading Centre for Diamonds. “Considering that we are the largest purchaser of diamond roughs in the world, there is no reason why India should not have a Diamond Trading Centre at par with the centres currently in Belgium, Israel and Dubai. We hope to have this established in the near future”, he said, while speaking at the inauguration of the International Diamond Conference – Mines to Market 2005 in Mumbai today. Shri Kamal Nath further said that the government would encourage foreign direct investment (FDI) and joint ventures between Indian entrepreneurs and businesses abroad in sectors all along the diamond chain – exploration, mining and sourcing, cutting & polishing, jewellery designing and manufacturing, exports, and sales and marketing. He underlined that enormous opportunities existed not only for FDI by foreigners in India but also for FDI by Indian industrialists in other countries.
“We are quite open to the idea of entering into economic cooperation agreements with countries, especially the countries of Africa, that ensure the supply of rough diamonds to India, while also bringing value and investment in other areas (such as transport, communications and infrastructure) to supplier countries. We should place emphasis on the promotion of forward and backward linkages, including the consolidation of our position in the small diamond sector segments, in syndicating buying of rough diamonds, and creating controlling stakes in mine-heads through joint ventures and tie-ups. We believe that only such trade is sustainable as brings value and benefit to all concerned; and we want to work on this basis”, he said.
Shri Kamal Nath also called upon investors to set up enterprises in Special Economic Zones (SEZs) dedicated to a single industry adding that “the gems and jewellery industry is best placed to take advantage of this”, now that the SEZ Act has been passed by Parliament.
Mr. Festus Mogae, President of Botswana; Ms. Phymzile Mlambo-Ngcuka, Minister of Mines & Energy, South Africa; Mr. Ingele Ifoto, Minister of Mines, Democratic Republic of Congo; and Shri Vilas Rao Deshmukh, Chief Minister of Maharashtra were among the dignitaries present on the occasion.
Referring to his recent visit to Australia in connection with meeting of the Joint Ministerial Council and Joint Business Council in Sydney and Melbourne, Shri Kamal Nath stressed that his first stop was Perth in Western Australia – the heart of Australia’s diamond mining area and said he had extensive and very promising discussions with mining companies as well as the Western Australian Prime Minister regarding continued supply of rough diamonds to India.
The cut and polished diamond segment accounts for about 75% of India’s total gems & jewellery exports. Out of every 12 diamonds in any piece of jewellery in the world, 11 are cut and polished in India. “I would not like you to treat this amazing fact as a mere statistic, but rather see it as an indication of the enormous relevance and importance of the diamond industry to the people of India”, Shri Kamal Nath said.
SB/MRS
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