Liquidity crisis: India likely to lose 'largest diamond processor' title

Domestic players are facing huge problems in raising working capital from banks post the Rs 115-bn PNB-Nirav Modi scam that emerged early this year

India is under threat of losing its title of being the world’s largest diamond cutting and polishing centre because of the ongoing liquidity crisis, regular customs scanning and hike in import duty on polished diamonds. China and Vietnam have emerged as the most business-friendly destinations for diamond processing.

Until recently, India was processing (cutting and polishing) nearly 85 per cent of the rough diamonds mined globally. Even in unfavourable demand situations, India has maintained its leadership in rough diamond processing in the past, despite the emergence of several such centres including Antwerp and Dubai. The country was considered to be