Indian diamond bourse opens

The world’s largest diamond exchange opened in Mumbai on Sunday, as India, the largest global cutter and polisher of roughs looks to establish itself as a trading hub, challenging the traditional dominance of countries such as Belgium and Israel.

Bharat Diamond Bourse (BDB), spread over 20 acres with eight interlinked nine-storey towers, has been set up in India’s financial capital at a cost of more than $200m. Situated in central Mumbai’s Bandra Kurla Complex the exchange will house 2,500 offices for exporters, importers and clearing agents, banks, customs departments and trading halls with top security as well as restaurants, food courts, landscaped areas and other amenities for the staff, visitors, businessmen and clients.

While India is a leading diamond manufacturing centre with 11 out of 12 diamonds in the world being cut, polished and processed in the country, it is hoped that the better infrastructure for traders and other operators in the country’s diamond industry will enable India to compete with Antwerp and Tel Aviv and even catapult its diamond trade to become the biggest in the world.

Anoop Mehta, president of the Bharat Diamond Bourse said the bourse would be the springboard from which the Indian diamond industry could endeavour not only to be the world’s largest manufacturing centre but also the world’s top diamond trading centre.

“Today we are the leaders in every aspect of this trade, in terms of number of pieces manufactured, maximum carats being exported and highest volume,’’ he said. “The BDB will ultimately help make India an international trading centre for gems and jewellery and take the step towards creating a Brand India in the world of diamonds.”

India’s diamond processing industry accounts for 70 to 75 per cent of total diamond exports, worth about $28bn annually. It also employs 850,000 people, making it the largest cutting centre not only by value but also by number of employees. The top 400 exporters will operate for the first time within the same complex

Incorporated in 1984 with a group of diamond exporters in the city, the exchange expects revenues to rise 10-15 per cent annually over the next five years. Although industry bodies said that they did not expect to see an effect on pricing, they expected diamond traders from Israel, Belgium and elsewhere to start trading in India as a result of the world-class bourse that complies with international standards.

“Buyers can now carry out trade as they would in Antwerp, Tel Aviv or New York,” said Vasant Mehta, chairman of India’s Gem and Jewellery Export Promotion Council.