India’s diamond export sector is facing ongoing declines, with recent data from the Gem and Jewellery Export Promotion Council (GJEPC) indicating a 22.9 per cent year-on-year drop in the export of polished diamonds for September.
This downturn follows a similarly sharp decline in August, where exports decreased by 23.8 per cent compared to the previous year. The trend reflects persistent challenges in India’s diamond industry, primarily driven by fluctuations in global demand and ongoing supply chain pressures.
Monthly Sales Reveal Uneven Trends
Despite the pronounced year-on-year drop, monthly sales figures suggest some fluctuation within the market. Total foreign sales of polished diamonds reached $1.29 billion in September, marking an increase from $1.04 billion in August and $908 million in July. While these figures show a slight month-on-month improvement, overall demand remains subdued, indicating that the sector has yet to recover fully.
India’s broader gems and jewellery industry, encompassing all jewellery export categories, also witnessed a decline, with gross exports falling by 15.9 per cent to $2.54 billion in September. This broader trend suggests that challenges are affecting various jewellery segments, not just diamonds.
Lab-Grown Diamond Exports Also Impacted
The lab-grown diamond segment, representing a smaller portion of India’s overall diamond exports, is also experiencing pressure. Exports of polished lab-grown diamonds dropped 16.5 per cent year-on-year to $111 million in September. Despite increased global interest in lab-grown diamonds for their affordability and ethical advantages, this segment is facing similar demand challenges, signalling an industry-wide impact.
