India Seeks To Help African Nations Develop Jewelry Industry
Diamonds.net, NY
(RAPAPORT) The Hindu: India has offered technical support and skills training to help Africa’s top diamond and gold producing nations, including South Africa, develop their gem and jewelry industries. India believes it would be beneficial for the African nations, the largest producers of rough diamonds and gold, as well as India, one of its biggest consumers.
Seeking a long-term relationship on a mutually beneficial basis, Union Minister of State for Commerce, Jairam Ramesh, has already held discussions with the mission heads of some African nations in Delhi, including South Africa, Ghana and Namibia, while a top-level business delegation is likely to visit these nations soon to formalize ties
Ramesh told The Hindu that almost 2 million people are directly or indirectly employed in the gem and jewelry industry in India and that the country needs to find reliable sources of raw material to ensure industry growth.
“Almost all gold and diamonds sold or processed in India are imported. Having futuristic arrangements and agreements with top diamond and gold producing nations will help this crucial sector to thrive. The aim is to make India a global hub for the diamond market,” Ramesh said.
While Africa alone accounts for nearly 50 percent of the world’s total diamond production, Ramesh said India was specifically looking at South Africa, Botswana, Ghana, Namibia and Angola for rough diamonds. Traditionally, most of India’s rough diamonds come from Antwerp, Belgium, but now major suppliers have shown keen interest in supplying uncut stones directly to Indian companies, he added.
India’s diamond imports in 2006-07 stood at $9 billion, while that of gold was $11 billion. India is the largest diamond cutting and polishing center in the world and is also the world’s largest gold consumer, accounting for about 20 percent of global demand at 800 tonnes annually.
“Though we are working towards developing our resources in Chhattisgarh, Andhra Pradesh and Karnataka, it will take 5-10 years. However, it will still not be enough to meet our demands. This African initiative will give a boost to the Indian gem and jewelry industry,” Ramesh said.
India has also proposed to develop the gem and jewelry industry of the African nations, apart from providing skills training. Then there could be joint venture initiatives between the companies and trade bodies of India and African nations, the minister added.
Copyright © 2007 The Hindu, Source: The Financial Times Limited
