Kamal Nath, the Indian Minister of Commerce and Industry, proposed investing in Canada’s diamond mines as a potential source for rough diamonds. In a meeting with Joseph Cordiano, Canada’s Minister of Economic Development and Trade. Canada produced 12.3 million carats of rough diamonds worth $1.7 billion, down 19.7% by value from $2.1 billion and marginally in terms of weight by 3 in 2005.

Canada, emerging diamond mining giant has agreed to explore the possibility of cooperation in the field of diamond mining with India, the world’s leading exporter of cut and polished diamonds.

The decrease in terms of value was attributed to lower grade ore currently being mined at Diavik and Ekati, located in the Northwest Territories. Annual bilateral trade between India and Canada had grown significantly over the last decade from C$788 million in 1992 to C$2.45 billion in 2004. India’s share in Canada’s imports is only about 0.5%.