India Reports $732.5M in Net Polished Exports, Negative Trade By Volume.

India reportedly exported $3.11 billion worth of polished diamonds last February, growing 54.3 percent from last year. India’s official polished diamond trading figures are notoriously inflated, and are not considered an accurate reflection of the country’s real international trade.

The volume of India’s gross imports decreased from 6.95 million carats to 6.68 million carats according to the provisional figures published late last week.

Polished diamond imports in the month totaled $2.38 billion, leaping 78.9 percent. This translates to net exports of $732.5 million, compared with $582.5 million in net exports in February 2010.

Surprisingly, the volume of imports, 11.1 million carats, exceeds the volume of exports, even though the country is a manufacturing center.

The polished figures reflect a practice known as Round-Tripping, exporting the same goods three or four times for receiving bank credit, which given against exports. Banks financing the diamond industry in other centers provide credit against sales.

Source : idexonline.com