(MENAFN) Indian diamond imports from Russia skyrocketed in August, climbing to $31.3 million—a 133% surge compared to the $13.4 million imported during the same month in 2024, according to figures from India's Ministry of Commerce and Industry reported by media.

Despite the dramatic monthly increase, cumulative Russian diamond deliveries to India have contracted sharply over the year's first eight months, plummeting nearly 40% to $342.1 million, the data reveals.

The United Arab Emirates dominated India's diamond supply chain in August with $685 million in exports, while Hong Kong delivered $173.1 million and the United States provided $140.3 million worth of gems, government statistics show.

As the globe's largest rough diamond producer, Russia has traditionally served as a critical supplier to India's massive diamond cutting and polishing sector. Yet Western sanctions targeting Russia's diamond trade and its principal mining corporation, Alrosa, have severely impacted Indian operations.

Since January 2024, the European Union and G7 nations have blocked direct imports of non-industrial diamonds mined, processed, or manufactured in Russia. Authorities subsequently broadened the prohibition to encompass Russian-origin diamonds cut and polished in third-party countries.

Compounding the pressure, India's diamond industry confronts a punishing 50% U.S. tariff on finished diamonds. This levy combines a 25% penalty for purchasing Russian oil with an additional 25% reciprocal duty imposed after trade negotiations between New Delhi and Washington collapsed in August.

The United States represents India's primary export destination for gems and jewelry. In August, Washington temporarily eased restrictions through a limited waiver permitting specific Russian diamond imports until September 1, 2026.

The combination of Russian gem restrictions and weakening global demand for diamond jewelry has destabilized India's cutting and polishing industries, which provide employment for thousands of workers. Data from the Gem and Jewelry Exports Promotion Council (GJEPC) indicates that gross exports of cut and polished diamonds totaled approximately $2.8 billion between April and June 2025, marking a 23% decline year-over-year.

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