A diamond trading hub is proposed in Mumbai which could make diamonds a bit cheaper for Indian buyers, report says.

India reportedly cuts and polishes nearly 85 per cent of the world's rough diamonds. As diamond miners like De Beers, Rio Tinto and Alrosa are keen on dealing directly with India, the proposed diamond hub could be a blessing for the Indian diamond industry, adds a report. There would be more clarity on the proposed hub only after a meeting between the industry and Union commerce secretary Rajeev Kher on November 21,, 2014. The industry expects the secretary to review the status of the gem and jewellery SEZ, which have been witnessing a gradual decline in business, says a report.

The production cost is likely to come down with the proposed hub. Also, consumers will be benefited as diamond will become cheaper as raw material cost will come down. Middlemen will also disappear from the trade, adds a report. At present, auctions take place in Antwerp, Dubai and Israel and Indian traders participate in those auctions to buy rough stones. The proposed hub will allow local players to buy directly from miners. Foreign miners now can't directly participate in local trade. India had imported 744.75 lakh carats of diamond worth Rs 56,471.46 crore in the first six months of the current fiscal year that started in April, says a report.