Interestingly, it is American demand that has fired the current surge in Indias exports of gems and jewellery which optimists believe might touch $9.4 bn this year. However, to minimise the overwhelming reliance on a single market, it is time for Indian gems and jewellery exporters to fan out to other markets through market surveys or trade exhibitions. This is a business that also moves on personal whims and fancies. For such reasons, the current years show should not generate complacency. Basically, the supply of rough diamonds is controlled by De Beers and some others. It is plausible that the supply stream may not contract abruptly, but margins can as price of imported rough diamonds is on the rise. A 30 per cent plus growth must be seen against the 12 per cent compound annual growth rate for gems and jewellery exports during 2002-07 as envisaged in the Medium Term Export Strategy. This strategy does emphasise focus products and focus markets that take into account growth potential as well as comparative cost advantages. But these parameters may not always be driving forces in the global market. Non-economic factors can add to risk and uncertainty as seen in recent years. Quite obviously, the challenge for the trade and Indian government is to minimise their impact.