India Intensifies Polish Diamond Imports

India exported polished diamonds to the tune of $1.241 billion in April, shipping out some 3.434 million carat of goods. This is a strong 42.45 percent increase in the value of exports compared to April 2007, according to provisional data provided by the Gems & Jewellery Export Promotion Council.

Even after discounting the falling value of the U.S. dollar, the value of exports rose by nearly a third - 30.65 percent.

But the interesting story is the imports that nearly doubled in value. Polished diamond imports totaled $652.29 million as more than 2.14 million carats were brought into the country. The volume figure does not include imports to the special economic zones.

As the country’s middle class is growing, purchases of diamond jewelry are growing with it, almost hand in hand. In dollars, total polished imports soared 196.74 percent, even while imports to the SEEZs and Bonded Warehouses fell more than 63 percent.

Imports to Surat, India’s diamond manufacturing center, shot up from $6.77 million in April 2007 to $395.72 million last month.

In terms of average value, exports stood at an average of $361.39 per carat, while the average value of imports in April reached $295.80 per carat.