The total exports of gems and jewellery during the just concluded year is provisionally placed at $6,152.70 million, up 10 per cent from the previous year's $5,574.22 million.

The overall performance of the Indian diamond processing industry, according to Gems & Jewellery Export Promotion Council (GJEPC) president Pravinshankar Pandya, has resulted in cornering almost 50 per cent of the world's export of around $1 billion for the first time in the history of India's diamond processing industry.

Releasing the provisional figures for the year to March 31, 1999 on Wednesday Pandya said: "We have managed to achieve this performance against all odds and even when the global diamond export tradehas declined by around 3 per cent."

The industry has already been enjoying market leadership in terms of volume and value. But this year, for the first time, it has even assumed such a commanding leadership position in value terms, Pandya said.

Voicing concern over the withdrawal of the lower credit for pre-and post shipment exports from April 1, 1999, Pandya said: "It is important for the government to think of measures for giving protection to this sensitive industry, especially in the light of the fact that China is considering aggressively to set up diamond processing zones which will give serious competition to Indian processors. Once the industry moves out of the country for whatever reasons, it will be difficult to bring it back."

Pandya thanked the government for the various export boosting measures and said the latest Exim policy provisions were `bold and pragmatic'. "The announcement would integrate the Indian diamond industry with global industries and would make exports morecompetitive."

However, some concerns were voiced out by Pandya. First, the interest rate for borrowing should be on par with competitors (other exporting countries) and fixed at 8 per cent compared to the current effective rate of around 14 per cent.

Second, import of cut and polished diamonds should not be restricted to just 5 per cent of the total export value.

It would be better if this facility was extended to all eligible exporters rather than retrciting it to export houses only. Third, gold directly imported by EPZ? EOU units should be assessed at the same effective rate of customs duty as applicable in the domestic area and lastly, continued sales tax on diamonds by some state governments like Maharashtra need to be withdrawn.

During the calender year ended December 1998, Israel recorded exports worth $3,635 billion, while India registered export worth $4,783 billion. Israel's exports fell by around 11 per cent in 1998 compared to its exports last calender year when the exports were $4.1billion.Against this, India registered a growth of 12 per cent over its exports for last calender year when exports were placed at $4,276 billion.