Mumbai's famed diamond district of Opera House is bullish about speculations that the city will soon emerge as a global diamond-trading hub. Indians are becoming integrated global players, involved in the entire supply chain right from sourcing of the gems to retailing finished jewellery. The recent spate of acquisitions by the big players in the business of reputed US brands testifies to this.

Many of these manufacturers are also planning joint bids for diamond mines across the world. This will eliminate the middlemen who now control the supply of rough diamonds. The removal of import duty on polished diamonds is a big push in the direction of creating a global hub in India. The two million sq ft diamond bourse in Mumbai will also become operational this year. All this drives home a point. Indians not only want to manufacture diamonds but also want to replace those who control the entire supply chain and thereby the global prices of the gem.

For a long time, London was the most important centre in the business, as it served as the headquarters of the Diamond Trading Corporation (DTC), which almost had a monopoly in the supply of rough diamonds. DTC supplies rough diamonds to an exclusive list of sightholders. Out of its 93 sightholders worldwide, 37 are Indians. The changes in the industry's supply chain in recent times has seen the declining importance of London in the diamond trade. This makes a strong case for the emergence of an alternative hub in Mumbai.

India is already the largest manufacturer of cut and polished diamonds with 10 out of every 11 diamonds being processed here. Diamond and jewellery exports reached $16.6 billion last year, second only to IT-related exports. With London and Antwerp slowly declining in importance, India could soon become the manufacturing as well as trading hub. However, if the industry has to maintain its present momentum, it has to keep innovating - not only in its business strategy but also in the manufacturing processes.

They have to look beyond the US and Europe, which would soon become saturated. It is commendable that many diamond manufacturers own patents for their unique cuts and designs. But if they really want to stand out, they must capitalise on the Indian brand. Diamonds manufactured in India must be made as unique as the Alphonso mango, Kashmiri carpet or the Chola bronze.