How to stop the rise of black diamonds in India
In India, the growth of black diamond prices has been increasing every year since the year 2000.
It has been the most expensive in the world, according to the World Bank, at $1,350 per kg.
In contrast, white nonferrous gold and platinum, which are cheaper, are priced at a mere $150-$200 per kg and the price of gold and silver is around $400-$600 per kg respectively.
In the first six months of this year, the price increased by about 50 percent, the most rapid rise in the country in the last 15 years, said Ankit Sharma, chairman of the department of metal resources and economics at the National Institute of Engineering and Technology (NIT), which is part of the Department of Economic Affairs and Planning.
“The prices of white nonfibrous metals are going up faster than the prices of other metals like gold and aluminum,” he said.
The prices for non-fibric material have also risen significantly in recent years.
Non-ferric materials are mainly used in building materials and industrial equipment, but their value has been rising rapidly as demand for the materials increases.
India has the world’s largest non-fabricated sector with a production capacity of more than 3.5 trillion tonnes of the minerals and is expected to become the world hub of non-metallic production in the next five years, according the World Economic Forum.
“It is a challenge to keep up with the demand for nonfiber materials,” said Dr Sudhir Ramakrishnan, managing director of NIT.
For a long time, India has been importing non-foam fibres.
However, this demand has dropped drastically in recent times, according a report by the NIT’s Sharma and another expert, Ajay Kumar, in an article in the Economic Times.
“In the past five years the import of nonfriable fibres is expected increase by 20-30 percent.
This is due to the rise in domestic production, increased demand from countries in Southeast Asia and increasing demand from China and South Korea,” they wrote.
This, coupled with the global decline in nonferric metals prices, is a major factor for India’s declining non-Fibre production, which was estimated to have reached 1.25 trillion tonnes in 2020.
The increase in demand for fibres from China, which accounts for almost a third of the world production, is another important factor for the drop in production, according Kumar.
India’s manufacturing capacity fell by 1.5 percent in 2020, according TOI.
It is expected in 2021 to fall by 3.8 percent.
While India is a country where the industry has been growing for many years, it is not clear if it is sustainable.
Experts agree that if demand for these materials is to grow, the country will need to focus on the supply chain, including its non-manufacturing sectors, which have a high turnover.
India’s demand for steel is projected to grow by 8.2 percent in 2021 and by 2.9 percent in 2022, according National Economic Research Associates.
The country is also expected to export 2.4 percent of its steel by 2022.
India’s non-production industries, including steel, copper and iron, are expected to grow at a higher rate in 2021, according data compiled by the World Economics Forum.