India's diamond exports plunge to 20-year low—Here's why
What's the story
India's exports of cut and polished diamonds have hit a 20-year low in the 2024-25 fiscal year, ending in March.
The sharp decline is largely attributed to reduced demand from key markets such as the US and China, a top trade body said on Monday.
The Gems and Jewelry Export Promotion Council (GJEPC) said these diamond exports usually account for almost half of total gem and jewelry shipments.
Export decline
Exports dropped by nearly 17% year-on-year
The GJEPC also revealed that the exports of cut and polished diamonds plummeted by 16.8% to $13.3 billion on a year-on-year basis.
This decline has severely affected overall gem and jewelry exports, which fell by 11.7% to $28.5 billion from last year's $32.28 billion—setting a four-year low for India's gem exports.
Import reduction
Reduced demand led to a decrease in diamond imports
The GJEPC also noted that the subdued demand for polished diamonds has prompted Indian processors to reduce their imports of rough diamonds.
These imports have fallen by 24.3% to $10.8 billion due to the slump in polished diamond exports.
India processes nearly 90% of the world's diamonds, making it the largest global hub for cutting and polishing.
This underscores how global market trends can have a major influence on domestic trade dynamics in India.
Tariff impact
US tariffs on Indian goods prompted March surge
Despite the overall decline, gems and jewelry exports witnessed a marginal 1% year-on-year increase in March to $2.56 billion.
The surge was attributed to exporters ramping up shipments ahead of potential US tariffs on imported Indian goods.
"US buyers were loading up in March before the tariffs kicked in," said Shaunak Parikh, vice-chairman of GJEPC.
India's gems and jewelry exports aren't expected to recover this year due to these tariffs affecting global markets and buyer confidence.