Diamond industry needs tailor-made financing solutions

In the wake of diamond financing becoming a challenge day by day, industry needs to find newer ways of funding the industry like P2P (peer to peer financing).

But before the industry embarks on a journey to find new financing options, it needs to embrace to two important factors - Compliance and Transparency - in the way it operates. Both being critical issues and absence of which has led to the Banks moving out of diamond industry financing or restricting their exposure to the industry.

So are we ready for change? Are we ready to give up age old ways pf business and bring in Corporatization and Professionalism in the sector. This will lead to the banks and other financial institutions having their faith restored in the sector. Also, the industry needs to be forthcoming in regards to taking action against miscreants especially 'willful defaulters'. In this, the GJEPC, BDB and MDMA can play a larger role. The GJEPC has already mooted 'My KYC' which is a welcome step. Apart from this, the Banks need to have tailor-made financing solutions especially designed for the diamond industry.

As the international financing to the industry has reduced, the major part of the funds for the industry comes from Indian banks. However, they do have tightened lending norms and made funding difficult. However, major onus of getting the funda still lies with the industry as it is upto them how do they restore lost faith and reinstate the credibility of the industry as a whole.