India's exporters may be hard hit by the appreciation of rupee against dollar. But the rising value of rupee has cheered the diamond industry in the country.
India is one of the largest importers of diamonds in the world as the country emerged as a major hub for processing of cut and polished diamonds.
India imported $1986.53 million worth of cut & polished diamonds during the financial year 2006-07. And the country processed about 58 per cent (worth $10.84 billion) of the world's polished diamonds (worth $18.72 billion) in 2006.
Now that the rupee has been appreciating against dollar, diamond industry traders say it is boon time for them.
Nearly 70
percent of India's diamond imports comes from the American market. And the appreciation of rupee against dollar tremendously helps the Indian diamantaires.
Gems and Jewellery Export Promotion Council chairman Sanjay Kothari says the appreciation of rupee is a big respite to the diamond industry amid the rising rough prices from the last one year.
"The industry would benefit if the valuation of rupee and dollar remain steady for the next six to seven months," he said.
The diamond industry in India -- concentrated mainly in Maharashtra and Gujarat -- accounts for 80 per cent of the world's total exports of gems and jewelry. It employs about 10 lakh artisans and workers.