DIAMOND INDUSTRY IN INDIA (Syllabus: GS Paper 3 – Economy)

Context: Recently, the gems and jewelry industry urged its members to halt the import of rough diamonds for a two-month period beginning on October 15 due to sluggish global demand and increasing inventories among domestic players.

India's Diamond Industry

• India is the world's largest cutting and polishing center for diamonds. It accounts for over 90% of polished diamond manufacturing globally.
• India contributes 19% of the total diamond exports in the world. (2019).
• Over 75% of the world's polished diamonds, gems, and jewelry are exported by India.
• The industry contributes 5% to India's GDP & provides employment to more than 5 million individuals, and it's expected that this figure will rise to 8.23 million by 2022.
• The govt. has permitted 100% FDI in the sector under the automatic route.

Diamonds

• Diamond is a rare, naturally occurring mineral composed entirely of carbon.
• It is the hardest known natural substance. It is also chemically resistant and has the highest thermal conductivity of any natural material.
• Top natural diamond producers: Russia, Botswana, Canada, Australia, South Africa, and Congo (Zaire).
• Other important producers: Namibia, Ivory Coast, Sierra Leone, Venezuela, Brazil, and more.
• The USA leads in making synthetic industrial diamonds.
• Russia has the world's biggest and richest diamond resources.