MUMBAI, April 22 (Reuters) – India’s polished diamond exports in 2023/24 are set to fall 27.5% from a year earlier to $15.97 billion, hurt by weak demand from the United States, China and the United Arab Emirates, a leading trade body said on Monday.
The fall in exports has forced the world’s largest diamond polisher to cut rough diamond imports by 18% from a year earlier to $14.27 billion in the financial year ended March 31, the Gem & Jewellery Export Promotion Council (GJEPC) said.
In response to lower export demand, the industry has voluntarily suspended rough diamond imports for two months from October 15, 2023.
The suspension of rough diamond imports helped address the imbalance between demand and supply, which had a positive impact on polished diamond prices in the first quarter, said Vipul Shah, Chairman, GJEPC.
“GJEPC is in talks with global diamond mining companies to increase investments to strengthen the overall promotion of diamonds and diamond jewellery in the US, China, Middle East, including India,” Shah said.
India’s gold jewellery exports (excluding gemstones) are set to rise nearly 62% in 2023/24 to $6.79 billion as shipments to the United Arab Emirates (UAE) more than doubled on the back of the Comprehensive Economic Partnership Agreement signed between India and the UAE, Mr. Shah said.