India signs agreement with Russia to share diamond trade data

India has signed a memorandum of understanding (MoU) with Russia to source data on diamond trade between two countries. Russia is the world’s largest rough diamond producer, while, India is the largest diamond processor. Presently, most of the rough diamonds produced in Russia are cut and polished in India. The agreement was signed between the Gem and Jewellery Export Promotion Council (GJEPC) and Russian Government-owned diamond mining firm Alrosa which accounts for around 25 per cent of the world total diamond output. The GJEPC Chairman Vipul Shah has asserted that India has sought long-term contracts between Russian firm Alrosa and Indian cutting and polishing industry. By adding further, he said that with this agreement, both trade bodies can look forward to exchange information and cooperation for the implementation of Kimberley Process Certification Scheme (KPCS) which prevents diamond industry finance to human rights abuses or war. Diamonds have occupied a special place among the precious gemstones. India has emerged as the leading diamond cutting and polishing hub of the world with 11 out of 12 diamonds being cut and polished in India. Indian represents around 60 percent of global polished diamond output in value terms. During 2013, India exported 36.46 million carats of polished diamonds worth $20.23 billion and imported 163.11 million carats of rough diamonds worth $16.34 billion. While, a predominant portion of rough, uncut diamonds processed in India is exported either in the form of polished diamonds or in the form of finished diamond jewellery. Indian gems and jewellery industry is a significant contributor to India’s foreign exchange earnings and represents around 14 percent of the total country’s export. Cut and polished diamonds along with rough diamonds constitutes the 50 percent share of the total industry’s export. India exported gems and jewellery worth $36.04 billion in 2013.