US tax reforms give Indian diamond exporters new hope
The Gem and Jewellery Export Promotion Council has partnered with the Diamond Producers Association for a global campaign to increase diamond purchasing and, following the recent US tax reforms, exporters eye increased business.
America has just introduced a new tax bill that, for some, will reduce tax rates in several areas. Diamond exporters are hoping that this will lead to an increase in Americans’ disposable income and that this could result in more diamond purchases and increased exports from India. “We are expecting that the $1.5-trillion tax bill of [President] Trump will boost the US economy and increase the purchasing power of Americans,” said Praveen Shankar Pandya, the Chairman of the Gem and Jewellery Export Promotion Council. “This will help Indian diamond exports to the US, the biggest market for us. We expect 2018-19 to be a better year for us,” Pandya explained.
It is expected that diamond demand will also increase for the Christmas and New Year holiday season and this could help to reverse the drop in fine jewellery exports that plagued the first seven months of the current financial year. In the first seven months of the financial year 2018, gem and jewellery exports fell by 13.18 percent in rupee terms but polished and cut diamond exports rose by seven percent. In order to increase exports, the Gem and Jewellery Export Promotion Council has partnered with the Diamond Producers Association, which is made up of large diamond miners, and they will be rolling out an international campaign to promote diamond jewellery buying.
Meetings are currently underway between Indian exporters and diamond miners to discuss rates and trends for the financial year 2019. “Pricing of rough diamonds depends on many things. We have asked them to consider stability in prices in FY19. However, it all depends on supply-demand scenario,” said Pandya. Miners involved in the meetings included De Beers, Rio Tinto, and Alrosa.
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