Exporters of diamonds and other gems watched with delight as the United States announced the election of Barack Obama as its 44th President.  In India, the industry took a tremendous hit when a 4 percent import tax was levied on all diamonds exported to the United States.  Because of this, US diamond importers began to divert their business to Europe and the Middle East.  The change in American government is expected to be very good for India’s suffering gem trade.
Because Obama will be taking on the herculean task of rebuilding the collapsed economy in the United States, Indian gem experts believe that he will lift the import tax, which will stabilize the price of diamonds and expand the market between the US and India once again.  According to Ahmebad.com, gem exporter Chandrakant Sanghvi said: “[Obama] understands the diamond industry well.  We expect his coming to power will be good for the industry as the US holds 55% of the diamond market in the world”. 
India exports the majority of its diamonds and jewellery to the United States, and sees the likelihood of Obama lifting the tax.  According to experts, this will be good for the economies of both countries.  Since the American economy is the primary issue for which Obama was elected, one can assume that he will make every move he can to not only improve the US economy, but to repair the damage its collapse caused around the world.  This means good news for the diamond trade in India and elsewhere.


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