The commerce minister recently announced further sops for the SEZs. Are you satisfied with the modalities of the scheme? Do you want something more from SEZs?
The concept is good. It is not altogether different from the Free Trade Zones mooted last year. While it could have been done earlier, the need of the hour is to start implementation immediately. In fact, more space is required at SEEPZ now. There is a queue of at least 50 companies wanting to expand. One only hopes that the notification is made at the earliest and the whole thing takes off. But it should be borne in mind that the SEZs should be easily accessible to the foreign clients along with adequate infrastructure such as hotels, airports and modern communications in place. Otherwise, there is no point in allocating extra space, say at JNP or similar such place. The trade also sincerely hopes that the policy of self-declaration means an end to raids and confiscation Raj. An end to harassment of genuine exporters in the hands of a unscrupulous few. At the same time, the trade wants to conduct its business above board and is not averse if the black sheep is weeded out.

You have said that you plan to look more towards growth in jewellery than export of diamonds in the future. What is the growth rate you envisage in jewellery? How do you plan to achieve the same?
For the year 2000-01 the target is $1,150 million - a 15 per cent growth rate. In fact, I want jewellery exports to touch $2 billion in the next couple of years. That is my goal while at the helm of the council. We wish to train the younger generation in designing jewellery as well as in cutting and polishing of diamonds. We propose to promote short-term (3-month) and long-term (2-3 years) courses in various aspects of jewellery making.

We hope to procure government funding, but will not wait for it. We want to make a beginning. We want to present this industry as a career option for the new generation. I sincerely feel that India has a vast potential to storm the jewellery markets just like it has captured the cut and polished export market.

And if SEZs become a reality (without any hassles), I see no reason why we cannot exceed the jewellery export target set even for the current year.

How long do you think the current growth rates in cut and polished diamonds will sustain themselves? Whom would you give credit for good performances? Do you think India will continue to hold on to the 50 per cent plus marketshare in export of polished diamonds?
It is true that it is generally felt that we have reached a plateau in export of cut and polished diamonds. But, it does not mean that we will rest on our past laurels and allow things to slip away. On the contrary, we will redouble our efforts even to just maintain the present marketshare. While we have estimated a modest 8-10 per cent growth rate, our efforts will be to surpass it. And pertinently the government should realise that liberalisation should not be reversed.

The 2,000-odd offices of the Indian diamantaires worldwide, the marketing backbone on which the industry thrives on and takes pride in has been attributed for the success of this industry.

Our efforts now will be to ensure that we get direct rough supply from miners outside the CSO. Already, some of them have opened offices (or are in the process) on their behalf in India. We also are looking at newer markets (like South America) both for jewellery as well as loose polished diamonds.

What are your thoughts on the new programme PPP introduced by the CSO? Ditto for branding of diamonds?
I think this new concept of PPP is changing the entire structure of the diamond industry. With De Beers shedding its role as regulator/guardian of the industry and more concerned about shareholder/stakeholder value. We will have to wait and watch. As far as India is concerned, we will now have to try and get direct supply of roughs from the mines (Russia, Canada, Africa, etc).

On branding, it is not yet successful. It is still in the experimental stage. Moreover, it will not apply to the smaller goods India specialises in. At present, it seems that branding will apply only to bigger diamonds.

What is the likely impact of falling Argyle production on the Indian diamond industry? Do you see any closure of factories (Surat) entirely dependent on Argyle roughs?
It is true that supply from Argyle has fallen sharply in the last two years. However, production from Argyle is expected to increase once again as soon as the new pits are opened. The scenario post-2006 will much depend on whether they opt for the underground pit route.

However, so far factories dependent on Argyle goods (Surat in particular) are not facing largescale closures. They are getting sufficient roughs and may also go for better goods from new suppliers. But they are not working more shifts or opting for longer holidays. Nobody is working at a loss.

How do you look at the threat posed by China to the India gems and jewellery industry?
Yes, I believe that China is potentially a bigger threat for India than so far perceived. I also believe that at present there are a vast number of workers in China catering to the diamond industry. The workforce is extremely hardworking and cheap too. There are no labour laws also to impede the production process.

More and more NRIs are preferring mainland China to India. China has become quite proficient in the last five years. The pace of growth set by the Chinese is quite astounding. And if it is not countered in time, China could well become a major processing centre. In jewellery too, the Chinese have made rapid strides ahead. They could be far more dangerous for the Indians in this segment as here India is still fighting to get a toehold.

Your reaction to the increased inflow of better quality goods from Israel and Belgium? Do you think these roughs should have come directly to India?
Better quality goods have been coming to India as a result of bilateral arrangements. And India has the technology to process bigger diamonds.

At the moment, it does not matter as to how these roughs reach here. We have the expertise and as labour is cheap, more and more such goods will reach India.

Could you give a break up of the destinations of jewellery exports?
Of the $80 billion plain and studded jewellery retail market, India accounts for just under $1 billion. Of this, about 40-45 per cent is sent to the US. Therefore, the state of the US economy is vital for the Indian industry and for the diamond industry worldwide at large.

Your views on conflict diamonds?
India does not figure in the conflict diamonds from Angola as they are expensive. Moreover, India is not geared to process the roughs (valued at $200 per carat and over). It must be stressed, however, that India has taken a stand that it will not entertain conflict diamonds.

Is India geared for the e-commerce revolution? What is your agenda for the same?
Even though some individual efforts are being made, the fact is that India has not made any concerted and combined efforts to tap this marketing tool. The Council plans to hold a seminar on e-commerce in the gem and jewellery industry. We plan to invite experts in this field to provide advise and catalyse the e-commerce effort.

A few words on the efforts being made by the industry and the Council for humanitarian causes?
The diamond industry has been at the forefront at times of national calamities. We have contributed about Rs 13-14 crore towards the Kargil, the Orissa cyclone and the recent drought relief work.