Antwerp's Advantage

By Ramesh Akkineni

from an article in Business Standard
"Impossible," says Freddy Hanard, CEO of the Antwerp World Diamond Centre (AWDC), the body that represents the city's diamond industry. "We cannot be replaced because what we have here is critical mass and the infrastructure to support it," states Hanard. "We have political stability, social and financial stability and, most importantly, multi-cultural stability," adds Ari Epstein, AWDC's deputy CEO. "Where else can you find Jews, Indians — both Jains and Marwaris — Armenians, Lebanese — both Maronite and Shia — all working together on a single street?" he asks.

Many within Antwerp's Indian community share this prognosis. "In Israel, Muslims are not welcome, in Dubai, Westerners don't always have an easy time, in Hong Kong, it's primarily the Chinese, and in Mumbai, it's Indians," says Mihir Shah of Jayam NV. "India is simply not so open for foreigners to come and work and this is something essential to the diamond business."

Its lack of multiculturalism is not the only obstacle to the success of Mumbai's bid to replace Antwerp. It is also plagued by lax security, sluggish bureaucracy, lengthy red tape, in addition to lacking the infrastructure, physical and financial, to support the international diamond trade. The Bharat Diamond Bourse project, intended as a one-stop shop and dedicated custom house for the trade, has taken almost two decades to complete. Value added tax has to be paid — only to be returned, although only after the government has held on to it for a while. "In Mumbai, you still have to pay octroi, and it isn't possible to import or export goods on consignment," complains Jayam's Shah.

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