Prime Minister Narendra Modi has said India and Russia want to focus on transforming economic relations with the bilateral diamond trade being a key pillar of the relationship. Mr. Modi invited Russia’s diamond mining companies to do business directly with India and asked Russian President Vladimir Putin to ease regulations to boost bilateral diamond trade.
Mr. Modi asked Mr. Putin to encourage Russian jewellers to process rough diamonds in India and asked him to permit duty-free re-import of polished diamonds.
Russia is the world’s largest diamond producer. India is the world’s biggest centre for the cutting and polishing of rough diamonds with $20 billion worth of exports a year.
Inaugurating the World Diamond Conference jointly with Mr. Putin here, Mr. Modi said on Thursday: “I have made proposals to President Putin…I would like Alrosa to have direct long-term contracts with more Indian companies… While most Russian rough diamonds come to India for cutting and polishing, less than 20 per cent come in directly… I want major diamond mining companies to sell directly to Indian diamond industry.”
Alrosa, the Russian Group of diamond miners, signed on Thursday contracts with 12 Indian companies for supply of diamonds worth $2.1 billion over the next three years.
Mr. Modi also invited Russian companies to trade on the Indian bourses. “We have decided to create a Special Notified Zone, in which major mining companies can import rough diamonds on a consignment basis and re-export unsold ones.”
President Putin said India should create favourable climate and sought reforms in customs procedures. “If India and Russia join hands, then diamond will not only sparkle by itself but will sparkle the whole world as well.”
