Diamond trade

Cooperation in diamond trade between Russia and India also figured in the discussions given the fact that India is the largest processing centre of rough diamonds and Russia is one of the world's largest producers of rough diamonds and, therefore, cooperation in this sector though direct trade would be mutual advantage to both countries. Russian setting up a joint venture by Alrosa with MMTC for manufacturing jewellery in India.

"India doesn't want to buy diamonds on a tender basis, but wants to sign long-term intergovernmental diamond supply contracts with Russia, while the Russian side said that ALROSA is a large company, so the issue should be first of all discussed with the company itself. ALROSA is one of the world's largest diamond companies, accounting for one-fourth of global production in value terms. It also accounts for 97 per cent of Russia's overall diamond output.

It signed a three-year agreement with India’s Rosy Blue, Diamond India Limited, and Ratilal Becharlal and Sons to supply rough diamonds.

At a time when all other diamond mining firms halted operations due to the falling demand, Russia became the top producer of the sparklers in 2009 with 34.8 million carats, or 28 per cent of global production.

And India became the top diamond importer in volume terms with 119.7 million carats, while the EC led in value terms at $9.2 billion.