The country's exports of 20.6 carats of cut and polished diamonds worth $4,493 million during the current financial year showed a positive growth of 6.08 per cent as against a reverse growth of 9.1 per cent during 1996-97, Gem Jewellery Export Promotion Council (GJEPC) chairman Praveen Shankar Pandya said.

He said Indian market share in the total production of polished diamonds in the world was 40 per cent in value terms and 80 per cent in carat terms.

India contribute eight out of each 10 pieces of polished diamonds produced in the world, he said.

However, during 1996-97, diamond exports had fallen by 9.10 per cent to $4235.10 million from $4661.90 million during 1995-96 as there was a split between Argyl and De Beers in June 1996 and due to apprehension thatthe two might enter into a price war hurting the industry, Pandya said.

Pandya said another depressing factor was the leakage of rough diamonds supply in the open market when Russia sold huge quantities of roughs in the open market to earn foreign exchange.

However, the problem receded as the Russian supply became very limited and occasional, he said.

"We are confident of improving our performance in the next few months," he said.