SURAT (Commodity Online): Surat’s diamond industry in India is slowly coming out of the recession mode and it is now eyeing the domestic market to tide over the demand fall in the US and Europe.

As part of its plan to increase domestic sales, Southern Gujarat Chamber of Commerce and Industry (SGCCI) has taken an initiative to organize a mega exhibition on diamond-studded jewellery ‘Sparkle-2009’ at Surat in December.

After the huge success of ‘Sparkle-2008’, SGCCI is organizing the event in cooperation with Surat Diamond Association (SDA) and Gems and Jewellery Export Promotion Council (GJEPC).

Consumption of diamond jewellery in India is expected to touch Rs 30,000 crore in 2012. The domestic jewellery market is pegged at $16 billion, which includes gold, diamond, platinum and others.

In the last four years, diamond jewellery sales have increased from Rs 5,000 crore to Rs 20,000 crore. Since US, which accounts for 45 per cent of the global jewellery consumption, is yet to come out of recession, the accelerating diamond jewellery sales in India is set to provide the much-needed insulation to Surat’s diamond industry facing volatility in US and UK markets.

The diamond industry has set its eye on the domestic market. Surti households have been declared the most prosperous in the country by National Council of Applied Economic Research (NCAER). The average annual household income (AHI) in the diamond city is Rs 4.57 lakh, the highest in the country. Thus, Surat has now overcome the global recession with its high spending capacity and disposable income.

The four-day event to be organized at Pandit Dindayal Upadhyay Indoor Stadium in Athwalines starting from December 26 will not only boost the gems and jewellery industry, but also the hospitality and tourism industry, as the event is likely to draw a large number of people from across the state.

There are more than 70 jewellery brands from Gujarat, Mumbai, Delhi, Kolkatta and Jaipur, who are participating in gems and jewellery exhibition. Some of the leading jewellery brands are Venus Jewels, BR Designs, Charu Jewels, Shashvat Jewels, Shrenuj Diamonds, Jaipur-based Jewel Ace, Mumbai-based Gold Star and world's leading gemological institute Gemological Institute of America (GIA).