Even in a near recession, we continue to see levels of export and import of the diamond growing, along with colored gemstones and gold. The diamond is a magnificent gem, one that has long been coveted. 
While other stones are gorgeous, the diamond has long been known as the most prized of all gems. Women and men appreciate the beauty of the diamond, choosing pieces that fall within a specific budget. Because diamonds are available in so many different styles, cuts, colors, and price ranges, everyone can enjoy owning a diamond, which is why we continue to see the industry growing.
For example, the Indian gem and jewelry industry recently reported a 22.27% growth in the export of diamonds. Even export of cut and polished diamonds had a huge growth from 2006 and 2007 of $10.9 billion to $14.2 billion. The United States also saw a nice 24% increase in total exports coming out of India, along with Hong Kong and other countries. Reports show that diamond exports and imports have experienced a steady growth, which has much to do with trading activities increasing.
In recent years, new trade policies have opened the door for opportunities that would not have been seen previously. For instance, the commerce ministry is currently setting an export target of $200 billion for the years 2008 and 2009, not an unrealistic goal. For the trade of diamonds to keep seeing growth, a number of changes have been suggested, although not all have been given a warm welcome. For example, it is being recommended that jewelry parcels for export going through foreign post offices could see a limited value going from $50,000 to $75,000. Another suggestion is for the time for re-importing of branded jewelry not being sold be pushed out to 365 days from the current 180 days.
It is expected that amendments to policy will help enhance the diamond and jewelry business, making it possible for the targeted $200 billion in exports to come to fruition. While many of the recommendations are fair and would be beneficial in the export and import business of diamonds, some are being scrutinized. One example is with turnover tax, which is being recommended for reduction, going from 8% to 6%. Then, some people have concerns over the rise in gold prices, thinking that the Positive Value Addition should be implemented.
In summary, while the diamond export and import arenas are seeing incredible growth, with even more growth expected in the future, some people are unsure of how new trade policy will affect the numbers. When you consider the United States imported close to two million carats of polished diamonds and exported almost two million carats this past February alone, you can see the tremendous need for people to come to agreements so the diamond industry can continue to see growth.
While there is still much to be worked out before new trade policies can be implemented, it is expected that all involved countries will reach a compromise. Without doubt, we expect to see great things happen in the world of diamonds to include new creations, new cuts, and of course, the continuing growth for the export and import of these precious stones.
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