Double Digit Growth for Israel’s Diamond Exports and Imports in 2011

Israel Diamond Institute

The Israeli Diamond Industry reports that it concluded 2011 with double-digit growth in exports and imports. This was achieved despite a slowdown in activity reported in the global diamond industry in the fourth quarter of 2011.

Israel’s total net polished diamond exports increased 23.5 percent in 2011 over 2010, reaching $7.2 billion. Net exports of rough diamonds rose 14.9 percent for the year to $3.5 billion. Net imports of polished diamonds in 2011 jumped 34.7 percent to 5.7 billion while net imports of rough diamonds were up 17.5 percent over 2010 to $4.4 billion.

The United States remained Israel’s major export market for polished diamonds, with 39 percent of the total. This was followed by Hong Kong 26 percent, Switzerland 6 percent, India 5 percent, United Kingdom 3 percent and the rest of the world 21 percent.

Net polished exports to the US stood at $2.8 billion, Hong Kong $1.9 billion, Switzerland $420 million, India $341 million and the UK $205 million.

“The year 2011 began with record growth in the first three quarters in all parameters, balanced out to some degree by a worldwide slowdown later in the year,” said Moti Ganz, Israel Diamond Institute chairman. “In 2011 we have exceeded our polished diamond export figures of 2007, which stood at $7.1 billion before the start of the economic crisis. This is clear testimony to the strength and vitality of the Israeli Diamond Industry.”

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Import Tax Caused an 80% Drop in India’s Diamond Imports

Indian workers polishing diamonds. Photo credit: Solitaire International

February diamond imports fell 80 percent, year-over-year, to $476 million in February due to a 2 percent import increase for the precious gem, according to the India Gems and Jewellery Export Promotion Council as reported by the Times of India.

The tax has led to drastic drop in the “circular” or “round tripping” among the country's diamond dealers and manufacturers. These are deals in which the same goods are traded over and over to raise capital. The practice has reportedly come under fire, inside and outside the Indian diamond industry, according to reports because it allegedly involves defrauding banks, padding a company’s volumes or laundering money.

The import tax has also led to a decline in diamond exports, GJEPC reportedly said.

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