India's diamond trade hub in Mumbai to be opened by November.

The special notified zone for rough diamonds in Mumbai will become functional from November, bringing relief to Indian traders who will be able to deal directly with international miners and save on money paid to middlemen.

At present, Belgium and Israel are the hubs where diamond miners sell rough stones. Indian traders purchase rough diamonds from these hubs and export them after cutting and polishing.

As per the industry data, India gives shine to 85% of the rough diamonds sold globally , but only 15% of the stones are imported directly , the rest being bought through the middlemen.

Once the 4,500 sq ft special notified zone (SNZ) at Bharat Diamond Bourse becomes operational, it will enable miners like Rio Tinto, Alrosa and De Beers to showcase their rough diamonds and invite bids. Indian diamond traders, who are facing a slump in sales, will be able to purchase directly from these miners, avoiding middlemen and saving on transaction cost.

'We have communicated to all miners that the SNZ will become operational from November. The miners are also getting approvals and permissions from their respective governments to showcase their diamonds at the SNZ,' Praveenshankar Pandya, the newly-elected chairman of Gem & Jewellery Export Promotion Council, told ET.

The government had announced plans to set up the SNZ last year.


ET