INDIA CONDUCTS STUDY OF ARMENIAN DIAMOND PROCESSING INDUSTRY

Tacy Ltd., Israel
May 2 2005

May 02, 2005

The Embassy of India in Armenia has undertaken a survey to explore
the diamond processing industry (cut and polished diamonds) in Armenia
and find out the investment opportunities for Indian businessmen. The
objectives of the survey on cut and polished diamonds in Armenia are
to define the role of the diamond industry in the general industrial
setup of Armenia, to study the current state of the companies involved
in the diamond processing in Armenia, to examine the present local
diamond market and potentials, as well as its industry volumes
and sources of import and export, to give statistical information
on Armenia’s external diamond transaction with other countries, to
identify the business environment and understanding the tax regime,
foreign trade regulations, foreign investment regulations, as well
as major disincentive information about business opportunities and
legal imports.

The survey found that Armenia currently has an advanced diamond
cutting industry and is an active player in the world market.
Armenia’s advantages are found to be highly qualified diamond cutters
and polishers with competitive wage rates, modern equipment at the
existing diamond processing plants, tax privileges (no taxes on
imported rough diamonds and exported cut and polished diamonds),
and government support to diamond processing aimed to facilitate
new investments.