Mumbai April 17

Indian diamond jewellery may be facing a double whammy.

In the US, it is losing its market share to iPod's, plasma and other luxury items. The US is the major market for diamond jewellery from the country. Expected withdrawal of the General System of Preference three months from now would potentially make Indian products more expensive in the US.

The Gem & Jewellery Export Promotion Council (GJEPC) Chairman, Mr Sanjay Kothari, said: "US accounts for 31 per cent of our gems and jewellery exports. We are trying to look at other markets like Japan and CIS nations.''

That's not all. China is another country to watch. Sustained economic boom is seen putting more money in the hands of the Chinese, something that would translate into demand for luxury products, including diamond jewellery.

But India may not be able to cash in on the emerging Chinese demand boom because Beijing is a well-known exporter of diamond jewellery. What India can look forward to is sale of cut and polished diamond to China.

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