De beers and diamond crisis

While the Indian diamond industry which is a major contributor to India’s foreign trade, is a study of contrasts. Its customs certified imports/exports run into billions of dollars, but are interlaced with hawala, tax evasion and FEMA violations. It polishes 90% of the world’s diamonds and is thus deeply interfaced/interlinked with modern global trade, but it is yet run in a traditional desi style, often violating the laws of the land. It deals in diamonds, a most precious item, but often the supporting documents are missing. Why these shortcomings and loopholes? Mr. Akhilesh Bharagava, Business Editor of HW Business and Finance shares his insights on the matter.