As much as 90% of the world’s rough diamonds pass through India to be cut, polished or traded by the thousands of gem companies. As much as 90% of the world’s rough diamonds pass through India to be cut, polished or traded by the thousands of gem companies. Modi’s reforms came just as the diamond industry was starting to show some signs of recovery following a bruising 2015. Average rough diamond prices rose 9.1% last year, recovering some of the ground lost when prices collapsed 18% in the prior year, the worst performance since the global financial crisis. Still, the lower end of the market was underperforming amid oversupply even before Modi’s reforms, and the demonetisation has added further pressure, said Chetwode.

Source: Mint January 18, 2017 03:04 UTC