Lok Sabha Question No. 1235 (UNSTARRED), answered on 2015-12-07
Subject: Diamond Business
Ministry: COMMERCE AND INDUSTRY
Asked by: T.G. VENKATESH BABU

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1235

## TO BE ANSWERED ON 7 TH  DECEMBER, 2015

## DIAMOND BUSINESS

## 1235. SHRI VENKATESH BABU T.G.:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- a) the  estimated  quantity  and  value  of  generation  of  diamond  business  in  the  country particularly  from  Surat  and  other  neighbouring  areas  and  the  number  of  workers associated with the industry and employment generation therefrom;
- b) whether there is a huge drop in the production of all major diamond polishing units and large number of employees associated with this industry are rendered jobless and few  of  them  have  committed  suicides  and  the  industries  are  facing  the  threat  of closure;
- c) if so, the details thereof;
- d) whether  the  Government  has  taken  any  steps  to  protect  the  industry  and  the employees associated with these industries; and
- e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## वाणिज् य एवं उद्योग राज् य मंत्री )श्रीमती निममला सीतारमि((स्वतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) Port-wise data in respect of cut and polished diamond is at Annexure-I.   As reported by Gem and Jewellery Export Promotion Council (GJEPC), approximately 4.6 Million people are employed in the industry.

(b) & (c)  Due to the global economic slowdown, marginal decline has been noticed in the  gem  and  jewellery  exports  during  the  year  2014-15  (US$  40.62  Billion)  as compared to the previous year 2013-14 (US$ 41.01 Billion).  However, Government has taken a number of measures to boost the diamond industry and the same have been elaborated in the reply to part (d) and (e).

(d) & (e)  With a view to promote the diamond industry, Special Notified Zone (SNZ) for  consignment  import/export  of  rough  diamonds  has  been  established  at  Mumbai where rough diamond mining companies will directly bring their production.  This will help  in  reduction  of  transaction  cost  of  Indian  diamantaires  and  also  ensure  steady supply  of  rough  diamonds  for  the  Indian  diamond  industry.    Also,  Government  has taken a number of other steps such as providing financial assistance for participation in  international  fairs,  organizing  buyer-seller  meets  etc.  under  Market  Development Assistance (MDA) and Market Access Initiative (MAI) Schemes of the Department of Commerce to boost the diamond industry.

Annexure - I PORTWISE EXPORTS OF GEMS & JEWELLERY FROM INDIA DURING THE  LAST THREE YEARS 2014-15

| Region         | C & P Diamonds   | C & P Diamonds   | Return Consignment   | Return Consignment   | Total Net Exports   | Total Net Exports   | % Share in Total   | C & P Diamonds   | C & P Diamonds   | Retu Consign   | Retu Consign   |
|----------------|------------------|------------------|----------------------|----------------------|---------------------|---------------------|--------------------|------------------|------------------|----------------|----------------|
| Region         | Lakhs cts        | US$ Mill         | Lakhs cts            | US$ Mill             | Lakhs cts           | US$ Mill            | US$                | Lakhs cts        | US$ Mill         | Lakhs cts      |                |
| Mumbai         | 342.12           | 22751.41         | 14.66                | 3356.31              | 327.46              | 19395.10            | 97.99              | 329.70           | 21697.42         | 18.93          | 4              |
| Bangalore      | 0                | 3.30             |                      |                      | 0.00                | 3.30                | 0.02               |                  | 3.22             |                |                |
| Delhi          | 0                | 6.85             |                      |                      | 0.00                | 6.85                | 0.03               |                  | 16.64            |                |                |
| Surat          | 2.59             | 332.71           | 0.01                 | 2.77                 | 2.58                | 329.94              | 1.67               | 22.31            | 1833.57          |                |                |
| Kolkata        | 0.17             | 4.21             |                      |                      | 0.17                | 4.21                | 0.02               | 4.89             | 659.27           |                |                |
| Hyderabad      | 0.01             | 2.19             |                      |                      | 0.01                | 2.19                | 0.01               | 5.57             | 202.02           |                |                |
| Jaipur         | 0                | 27.84            |                      | 7.62                 | 0.00                | 20.22               | 0.10               |                  | 30.60            |                |                |
| Chennai        | 0.14             | 1.15             |                      |                      | 0.14                | 1.15                | 0.01               | 0.03             | 1.60             |                |                |
| Vishakhapatnam | 0.33             | 30.45            |                      |                      | 0.33                | 30.45               | 0.15               | 3.48             | 54.14            |                |                |
| TOTAL          | 345.36           | 23160.08         | 14.67                | 3366.70              | 330.69              | 19793.38            | 100.00             | 365.98           | 24498.48         | 18.93          | 4              |