(MENAFN) India witnessed a notable decline in its exports of cut and polished diamonds during the fiscal year 2023/24, with a significant 27.5 percent year-on-year drop to USD15.97 billion. This downturn was attributed to a slowdown in demand from key markets such as the United States, China, and several other countries. The Gem and Jewelry Export Promotion Council of India revealed this concerning trend on Monday, highlighting the challenges faced by the world's largest diamond polishing industry.
The decline in diamond exports prompted the industry to take proactive measures, including an 18 percent reduction in imports of rough diamonds compared to the previous year, amounting to USD14.27 billion by the end of March 31. To address the imbalance between supply and demand, the sector voluntarily suspended imports of rough diamonds for a period of two months, starting from October 15, 2023.
Vipul Shah, Chairman of the Council, emphasized the positive impact of the suspension of rough diamond imports on polished diamond prices during the quarter ending March. Shah underscored ongoing discussions with international diamond mining companies aimed at increasing investments to bolster comprehensive promotion efforts for diamonds and diamond jewelry, particularly in key markets such as the United States, China, and the Middle East, including India.
Amidst the challenges faced by the diamond industry, there is a contrasting trend in India's gold jewelry exports. Exports of pure gold jewelry surged by nearly 62 percent during the fiscal year 2023/24, reaching USD6.79 billion. Notably, shipments to the UAE more than doubled, driven by the Comprehensive Economic Partnership Agreement inked between India and the UAE. This growth trajectory in gold jewelry exports presents a promising avenue for India's jewelry sector amidst the prevailing challenges in the diamond market.
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