Gujarat Seeking Foreign Investment in Local Industries

The Indian state of Gujarat, where most of the world’s diamonds are polished, is seeking direct foreign investments in areas of bio-technology, pharmaceuticals, textiles, and diamonds.  A Gujarati delegation, representing various economical interests, recently visited Belgium and Israel to promote this effort.

The state is holding the Global Investors Summit January 12 – 13 at which it plans to present its achievements, benefits, and potential for investors.  According to K.K. Sharma, executive director of the Indian Diamond Institute and a member of the delegation that visited Israel, India’s strength in the diamond industry should not serve as a deterrent, but rather viewed as a fertile ground for joint ventures.

In the Gujarati city of Surat, where about 80 percent of the world’s diamonds are polished, the diamond jewelry industry is small by comparison.  “Joint ventures with small local jewelry manufacturers is a great opportunity,” Sharma offers an example.  “The opportunity of foreign investors is tremendous.  The government is open and supportive, diamonds are plentiful, and manufacturing diamond jewelry for exports as well as for the Indian market is a big opportunity to make money.”

The Gujarati government is also offering some incentives to such investors. According to Sharma, investors setting up plants in the Special Economic Zone (SEZ) will be exempt from taxes on exports of diamond jewelry.

In addition, the state would like to see Russian and Canadian diamond producers open local sales offices and supply the manufacturing center with a direct supply of rough diamonds.