Indian Diamond Trade Eyes Latin American Market

After enjoying strong business relations and tie-ups with the USA, now the Indian diamond and jewellery manufacturers are eyeing on the potential market of Latin American countries, mainly Chile, Peru, Brazil and Panama.

A recent visit to these countries by a delegation from the Gem and Jewellery Export Promotion Council and subsequent interaction by the industry proved that with quality but cheaper polished diamonds and designer jewellery, Indian industries have rights to woo their competitors, mainly from European and Chinese markets, in LA markets.

Jivrajbhai Surani, Co-convenor of the GJEPC's Gujarat Division believes, "We can exploit these rich markets with our better products and there are now lot of opportunities for bilateral trade. Though most of the traders of these countries are aware of our strength in diamonds but manufacturing of jewellery has been started in India was not known to most of the jewellery exporters."

"Now following the high-level delegation of GJEPC and our subsequent interaction, we believe to go enjoy a strong business relation with these countries as well," Surani, owner of J B Diamonds, one of the largest exporter, told Business Standard.

It may be added here that this was the first such delegation from India to LA countries which has worked an eye opener for delegates as well as traders of these countries. The member of the Indian delegation were Sudhir Mehta, Pankaj Parekh, Sanjay Kothari, Chairman of the GJEPC and Haresh Zaveri.

Kothari, chairman of GJEPC, explained the trip as 'to increase awareness of the magnitude of the Indian diamond trade, to invite traders, manufacturers to deal directly with India and avoid intermediaries, to highlight the competitiveness of goods that India produces.

"We have other plus-points like, SEZs have been created in India with a motive to various raw material rich nations to start business here as highly skilled labour was cheaper and also duty free import is now allowed," said Chinubhai H Gajera, owner of Laxmi Diamonds, one of the largest diamond exporters in the country.

Industry big-players also have found rich markets in Panama, besides potential in Brazil. "Panama is a small place but a good market for plain and studded jewellery. It is a hub for LA countries and other central American countries and Colon FTZ has lot of potential for import of plain and studded jewellery from India," said Gajera.

The GJEPC delegation during its visit in last July, also found that there were certain wholesalers who showed them invoice of Indian exporters mainly from Jaipur and these were jewellery studded with semi-precious stones and combination of very low grade of diamonds.

"Their problem was lack of consistency in supply by the Indian exporter," one of the delegates said.

The diamond industry owners, here also have observed though the market in Chile has immense potential but India and Chile have not entered into any joint venture till date. "We need to work out JVs with Chile industry people which will help us to expand the business as well as to rich the revenue," said Pravin Nanavati, President of Surat Diamond Association.