Diamond Sector Facing Challenges Due To Reduced Demand: Piyush Goyal

India’s diamond industry has been facing tough times over the past three years, mainly due to a drop in demand from key export markets and challenges caused by G7 sanctions on Russian diamonds.

According to Commerce and Industry Minister Piyush Goyal, diamond exports have fallen from $25.48 billion in 2021-22 to $18.37 billion in 2023-24. Imports also saw a dip, dropping from $28.86 billion to $23 billion in the same period.

Minister Goyal acknowledged the struggles, noting that the diamond sector has been hit by reduced demand in major export destinations and supply issues, especially due to the sanctions on Russian-origin diamonds.

Additionally, Goyal mentioned that exports of cut and polished diamonds have been going through a downturn because of lower demand.

The government, in collaboration with industry groups like the Gems and Jewellery Export Promotion Council (GJEPC), is working on finding new markets and products to strengthen India’s position in the global diamond and jewellery sector, while still maintaining its presence in traditional markets.

The Indian diamond industry includes over 7,000 businesses involved in diamond cutting, polishing, and exports, mostly concentrated in Surat, Gujarat, and Mumbai, Maharashtra. Many of these businesses are small and medium-sized family-owned companies.

The sector is a huge employer, directly providing jobs to around 1.3 million people. Surat is particularly important, with about 800,000 workers engaged in diamond cutting and polishing, making it the global leader in the industry. Beyond direct jobs, the diamond trade also supports many other jobs in related industries like logistics, retail, and diamond processing equipment manufacturing.