Decline in Indian Diamond Exports

• 08 Mar 2024

Source: TH

India's diamond export is anticipated to witness a significant downturn, with projections indicating a decrease to a 5-year low of approximately USD 15-16 billion in 2023-24.

• This bleak outlook is attributed to subdued demand from major markets such as the U.S. and China, which collectively contribute around 65% of India's diamond exports.
• Factors including the emergence of alternative spending options, the growing popularity of lab-grown diamonds(LGDs), and geopolitical tensions further exacerbate the export slowdown.
  • LGDs are manufactured in laboratories, as opposed to naturally occurring diamonds. However, the chemical composition and other physical and optical properties of the two are the same.
• Major Diamond Producing Countries: Russia, Botswana, Canada, South Africa, and the Democratic Republic of the Congo.
  • In India, Surat is dubbed as the Diamond City. It holds a commanding position in processing precious gems, with roughly 90% of the world's rough diamonds cut and polished in the city.

Read more: Lab-grown Diamonds