1. |
Recent changes in the domestic mining legislations of many diamond producing African countries have the potential of affecting the availability of rough diamond for India. In fact countries like South Africa, Botswana etc. are ensuring that a significant chunk of diamonds produced in those countries is cut and polished locally. |
2. |
A study by KPMG, one of the renowned international advisory firms has predicted that many of the African countries and China are fast emerging as the serious challenger to the monopoly of India in the field of cutting and polishing of rough diamonds. |
3. |
The sector, being an export intensive one is sensitive to global currency situation and recent devaluation of dollar has had a heavy toll on the sector. |
4. |
One alarming trend has been the decline of exports of cut and polished diamonds from India on a year-on-year basis. The percentage of exports in cut and polished has actually declined from 21.33% in 2003-04 to a disastrous -7.99% in 2006-07. |
