India’s diamond traders are eyeing an increase in business from the tax reforms in the United States that they believe will lead to an increase in the disposable income of Americans and consequently higher spending on lifestyle products including diamond jewellery, reports Economic Times.
The Gem & Jewellery Export Promotion Council has also partnered with the Diamond Producers Association comprising leading diamond miners to embark on an international campaign to boost diamond consumption across the globe.
These factors have raised expectations among gems and jewellery exporters of a better 2018-19 than the current financial year. Gems and jewellery exports in the first seven months of the current fiscal fell 13.18 per cent in rupee terms over the previous year and 11 per cent in dollar terms, although exports of cut and polished diamonds went up by 7 per cent in volume terms to 214.05 lakh carats.
The Indian diamond traders are expecting that the $1.5-trillion tax bill of US President Donald Trump will boost the US economy and increase the purchasing power of Americans. This, they hope, will help Indian diamond exports to the US, the biggest market for us.
Indian exporters had held meetings with diamond miners such as De Beers, ALROSA and Rio Tinto about the demand scenario. The sentiment is improving at diamond manufacturing units across the country thanks to demand from the US and China, traders said.
Manufacturers are focusing on small stones to keep factories operational at required levels. Rough diamond demand remains stable as cutters start to prepare for anticipated rise in first-quarter sales.