India’s Polished Diamond Exports Hit Two-Decade Low in FY25
The Gems and Jewellery Export Promotion Council (GJEPC) recently revealed that India’s cut and polished diamond exports have hit a near two-decade low in the financial year 2025 (FY25). The decline in exports is attributed to weak demand from major markets such as the United States and China. This significant drop has a ripple effect on the overall gem and jewellery exports, which are a vital contributor to India’s economy.
According to the GJEPC, the cut and polished diamond exports, which typically account for around half of India’s overall gem and jewellery shipments, have witnessed a decline of 16.8% year-on-year (YoY). This substantial drop in exports is a major concern for the industry, particularly considering that India is the world’s largest cutter and polisher of diamonds.
The decline in demand from the US and China, two of the largest markets for Indian gem and jewellery exports, has been a significant factor in this drop. The US, which is India’s largest market for gem and jewellery exports, has been experiencing a slowdown in demand due to various factors such as increased competition from other diamond-producing countries and changes in consumer preferences.
China, on the other hand, has been facing economic challenges, including a slowdown in its economic growth rate, which has impacted its demand for luxury goods, including diamonds. The Indian gem and jewellery industry has traditionally relied heavily on exports to these two countries, and the decline in demand has had a significant impact on its exports.
The decline in cut and polished diamond exports has also had a cascading effect on other segments of the gem and jewellery industry. The decline in demand for polished diamonds has led to a decrease in the demand for rough diamonds, which are the raw material used to produce polished diamonds. This decline in demand has resulted in a significant inventory build-up of rough diamonds, which has put pressure on prices.
The Indian gem and jewellery industry is a significant contributor to the country’s economy, employing millions of people and generating significant revenue. The decline in cut and polished diamond exports has not only impacted the industry’s revenue but has also led to job losses and a decline in economic activity.
The industry is now looking to diversify its exports and reduce its dependence on the US and China. The GJEPC has been working with the government to identify new markets and promote Indian gem and jewellery products in these markets. The industry is also looking to increase its exports of other gemstones such as coloured stones and pearls to reduce its dependence on diamonds.
In conclusion, the decline in India’s cut and polished diamond exports to a near two-decade low is a significant concern for the industry. The decline in demand from the US and China has been a major factor in this drop, and the industry is now looking to diversify its exports and reduce its dependence on these markets. The government and the industry must work together to identify new markets and promote Indian gem and jewellery products to mitigate the impact of this decline.
Source:
