Reports suggest that India’s diamond traders have set their expectations from the state budget to be announced for this year. The industry is keen the government allot a higher turnover tax. According to Rohit Mehta, joint secretary of the Surat Diamond Association, the diamond industry had informed Finance Minister C. Chidambaram to establish a turnover tax of 3%.%%The diamond industry is the second largest export generator after computer equipments for the Indian economy and in this context had suffered a huge loss due to the appreciation of the rupee against the dollar. The diamond traders also proposed that the government speed up prospecting in the country to overcome the shortage of raw materials.