Diamond is following gold in China and India

Diamond is following gold in China and India. China and India--the world's two most populous nations--are the largest consumers and importers of gold. The ever-increasing appetite for gold from Chinese households and bullion traders has led the dragon country to beat South Africa as the largest yellow metal producer in the world.

Now, China along with India, are emerging as the glittering destinations for diamond trading in the world.

According to Vasant Mehta, ex-chairman, Gem & Jewellery Promotion Council, the apex trade body in India, India and China are the centres of future diamond industry.

"As the world moves into a new era post the crisis, there are many aspects that have changed fundamentally. Key to this is the shift in focus. While the US still remains a large diamond jewellery consuming centre, there can be no doubt that India and China are the centres of the future for the diamond industry on all fronts. There are those who keep closely monitoring the developments in both these countries as if the two are in a race," Mehta said.

Mehta said there are many Indian companies which are already developing ties, cooperation and relationships with China on many fronts.

"Taken together the two eastern giants are a formidable force, in every way, whether in sheer numbers of population, of skills, as developing economies and as markets. I look forward to the unfolding of the future in which our two great nations will take centre stage" Mehta pointed out.

Addressing the prestigious conference 2010 China Diamond Conference held in Shanghai, Mehta presented insights on the burgeoning Indian Diamond Industry & how India over the years has attained leadership position in the global market. He spoke about India's superior technological capabilities and efficiency of labour along with Government aid which has helped India establish itself as 'Global jewellery Hub'.

Experts say China and India owe the increasing diamond consuming trend to tremendous growth of their economies, and bigger life standard of their population, not to mention the fact that 2 billion people live in these two countries, so diamond market in these countries could really only grow in future.

Big economic growth has turned China into the fifth largest diamond consumer in the world, with sales soaring from US$230 million in 1995 to US$1.2 billion in 2007. Many agree that if current trend is to continue China will soon overtake the US as the largest diamond consumer market, in a matter of years.

Diamonds were first in China connected with luxury but now diamond consumption is changing from luxurious to more habitual consumption. China is also slowly but surely catching India as the top diamond cutting country mostly because of skilled, and most importantly cheap labor force, and currently there are more than 25,000 people working in China's diamond industry.

India is the third largest diamond consumer after the United States and Japan. India accounted for 8 percent of global consumption in 2009. This is expected to grow to 11 percent by 2016.

According to De Beers, the world's largest diamond producer with 40 percent of the market, India and China will be the next engines of growth for the sector, together accounting for 20 percent of consumption in 2016.

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