To make up for a decelerate caused by the government crack down on imports of the precious metal, jewellers in India are relying on a mounting enthusiasm for diamonds in the country and resilient demand for gold among its non-residents. Jewellers such as Titan Industries and Gitanjali Gems are assertively promoting diamond jewellery, which uses less gold, and opening more stores in cities such as Singapore and Dubai in an effort to stimulate sales. This move could help create unusual demand sources for the worn out yellow metal in the medium term and help somewhat lessen price declines. "We are moving to diamond jewellery more aggressively, introducing lower-carat jewellery and also pushing silver jewellery," said Mehul Choksi, Chairman and Managing Director of Gitanjali Gems. Gold forms a vital part of a bride's trousseau in India, the world's top consumer of the metal, where it is also considered auspicious for religious rituals. But its imports have contributed to a rapidly increasing current account deficit. Hence, since May, India has raised gold import duties and squeezed credit availability for importers of the precious metal.%% After data showed Indians imported a record 162 tonnes of gold in May, jewellers joined a government campaign to slash gold buying. Along with this situation, the declining rupee also inflicted pain on jewellers, which they are now trying to reduce by focusing on new areas. "Jewellers are thinking of introducing 14-carat jewellery. Low-carat jewellery will help us to control imports as well," said Haresh Soni, Chairman of the All India Gems and Jewellery Trade Federation. Jewellers mix metals like silver and copper to reduce the purity of the yellow metal. Diamond jewellery uses 20-25 percent less gold compared to a normal 22-carat jewellery piece, according to Choksi of Gitanjali Gems. Diamond jewellery sales are growing, said Kamal Gupta, Director at PP Jewellers in New Delhi, adding rising income of the lower middle-class pushes a switch from gold to diamond. Following the government's measures, gold imports in June may be just 37-40 tonnes against a monthly average of 70 tonnes, according to the trade federation's Soni. And imports in July-December may decline by 20-25 per cent compared to the first half of this year, he said. Foreseeing further restrictions, some jewellers plan to enhance their overseas presence to increase sales, especially to non-resident Indians. "For those who are in the jewellery business, Middle East countries are very attractive now," said Gupta from PP Jewellers. The company is currently "working on" opening stores in Dubai and Singapore, according to Gupta. Gitanjali plans to open more stores overseas in the United States, Middle East, China and Japan, and expects to increase sales by 50 percent from its international operations over the next 18 months.%%