The morning of Day Two was focused on the post crisis situation and the steps that the industry needs to take. %% The first session began with a presentation by Russell Mehta, COO, Rosy Blue (India), who spoke on "Assessing the Present – Moving to the Future". Mehta opined that the emerging markets like India, China, Brazil, Middle East, South East Asia and Russia were crucial to future growth, which he expected to be steady. He opined that rough supplies would be somewhat stable over the next five years with marginal declines subsequently, and then come to a gradual end as mines exhaust their potential. Polished prices too would rise gradually in this period. Predicting that India would continue to be the largest manufacturing centre, Mehta concluded that the industry needs to be more transparent and socially responsible, and work towards creating an emotional hook in the minds of consumers by promoting diamonds as a category. %% The panel discussion on "Crucial Challenges to Moving Ahead" saw some frank opinions being expressed about the country’s achievements and some of the areas of concern. The panellists included Ashish Mehta, partner, Kantilal Chhotalal; Vishal Mehta, director, Rosy Blue, South Africa; Rajiv Mehta, director, Dimexon; Rohan Shah, managing partner, Economic Law Practice; and Biju Patnaik, regional manager, Asia, International Diamond & Jewellery Group, The Royal Bank of Scotland. %% The participants all agreed that India had emerged stronger out of the recent economic crisis, registering a significant rise in its share by value of the world polished diamond market as a result of taking over a portion of the business in larger sizes. The panellists also felt that synthetic diamonds are no longer perceived as a threat in the way they were some years ago, and that there was space for them to be marketed as a distinct category. The importance of marketing and sending out the correct message to the consumers was stressed as the key to maintain profitability. However questions related to the difference between gross and net polished exports evoked some discussion. A few panellists expressed the view that the figures might not represent real demand, and could be high for a variety of reasons, while others argued that when the government lifted the duties on polished imports, the failure to introduce a presumptive taxation system, as had been requested by the industry, left some loopholes that may be exploited by a few.