The buzzwords now are branding and PPP sightholders. Profits and not control are the key words. However, the Internet revolution could have the widest ramifications on the global structure of the diamond industry in the medium to long term period.

Reports indicate that e-tailing as opposed to retailing could become the mode of purchase in the US, where the Net culture is strong. Many in the diamond industry believe that cheaper branded jewellery and even loose diamonds can be sold on the Net.

Some estimates suggest that 18 per cent of all jewellery sold would be via the Net within the next couple of years. When one considers that the US accounted for 46 per cent of the $56 billion studded jewellery sold during 1999, the US could well pull jewellery trade towards Net trading.

Another point to note is that the US retail jewellery market has grown to the present $24 billion plus levels primarily fed by small goods, a speciality unique to India. Thus, in a scenario wherein the largest retail industry by volume and value is caught in the Web mania, are the manufacturers tuned to the changing scenario.

By all accounts, only Israel is awake to the possibilities of trading on the Net and has taken a headstart lead. Already Internet companies have been formed there (diamondfloor.com, etc.). Strangely, these companies have been formed after forging an alliance with competitors in the real diamond markets. This, primarily because the start-up costs are too high to be borne by individual companies alone.

Meanwhile, the impression that Antwerp gives is that of a centre being beset with its own problems and being a Net laggard like the rest of Europe.

India too is a sleeping giant. It has the largest manpower in manufacturing and has captured more than 55 per cent of the polished markets by value -- nearly $6.6 billion for the period April'99-March 2000. But on the Net front, things are limited only to individuals putting up their Web pages. There is hardly any sale done via the Net and no Net companies have been formed. Importantly, the IT Bill was passed only recently by the parliament and e-commerce trading is yet to take off. Moreover, diamantaires complain that polished goods exported cannot be re-imported freely, one of the pre-requisites for Net trading.

However, India has the most vibrant IT industry -- mainly export-oriented. And a marriage between the two (the largest manufacturing base and IT professionals) could trigger a revolution whereby India could become the trading hub for the global diamond industry.

What remains to be done is for some of the big guns to come together, very difficult in this very individualistic trade. Someone has to take a lead. The GJEPC is in the best position, so also the DTC with its PPP and regular sightholders. Even the IADC with its history of marketing jewellery in the US could take the lead. Just a push is needed. Will the bureaucracy, and a trade unable even to set up the much heralded diamond bourse, rise to the challenge?