Assessment of the Competitiveness of the Diamond Cutting Industry in India (Case Study: The Gujarati Diamond Cutting Cluster)

The aim of the research is the comprehensive analysis of the Indian diamond cutting industry’s competitiveness (case study: Gujarati diamond cutting cluster). The authors show that the promotion of the diamond industry has a significant positive impact not only on the development of the economy of Gujarat, but also on the entire Indian economy as a whole. The authors pay attention to the evolution of the development of the Gujarat diamond cutting cluster, as well as its modern trends through the prism of the current situation on the world diamond market in the 2010s.The subject of the article is Gujarat diamond cutting cluster and the research question is to evaluate its drivers and limits. The working hypothesis of the study is the following: the competitiveness of the Indian diamond cutting industry is largely determined by the significant role of the state, which is generally typical for the Indian economy as a whole.The theoretical basis of the research is the synthesis of M.Porters concept of competitiveness of national economy branches and the mathematical approach of B.Balassa to the assessment of the revealed comparative advantages of the country on the specific product’s world market. The research is based on the systematic approach to the study of national economy using basic methods of scientific knowledge such as induction and deduction, analysis and synthesis as well as field research.The specific feature of this article is a detailed analysis of the competitiveness model of the Indian diamond cutting industry, as well as the calculation of the Balassa index and the drawing the appropriate graphs.The article presents different data on the place of the Indian diamond industry on the global market and India’s achievements in the special equipment production and fostering the creation of specific factors. Future studies should focus on further research on specific factors of competitiveness of Indian diamond cutting industry, as well as the role of the state in the Indian economy.