India’s diamond exports tumble 27.5%

India’s cut and polished diamond exports witnessed a significant decline in the financial year 2023-24, falling 27.5 per cent to $15.97 billion compared to the previous year, as reported by Reuters on Monday.

This slump can be attributed to sluggish demand from key markets like the United States, China, and the United Arab Emirates (UAE).

The Gem and Jewellery Export Promotion Council (GJEPC) reported a drop in both exports and rough diamond imports.

Weak demand led to an 18 per cent year-on-year decline in rough diamond imports, reaching $14.27 billion by the end of March 2024.

To address this demand-supply imbalance, the industry voluntarily suspended rough diamond imports for two months starting October 15th, 2023.

Despite the struggles in the diamond sector, India’s plain gold jewelry exports painted a contrasting picture. This segment experienced a significant jump of nearly 62 per cent in 2023-24, reaching $6.79 billion.

This growth is attributed to a surge in shipments to the United Arab Emirates, likely fueled by the recently signed Comprehensive Economic Partnership agreement between India and the UAE.