Indian diamond industry observers are concerned over recent statistics indicating a sharp increase in polished diamond imports.
The Gem and Jewellery Export Promotion Council reported that India exported $19.7 billion worth of diamonds in the current fiscal year while it imported $12 billion worth of rough diamonds. Its imports of cut and polished diamonds stand at $12.9 billion, compared to $9 billion last year.
These figures worry observers who say that some traders are involved in importing cut and polished diamonds only to re-export them, resulting in a net outflow of foreign currency. As a result, import data was inflated.