India’s diamond retail sector has faced significant challenges in the past three years, with declining demand in key export markets and disruptions from G7 sanctions on Russian-origin diamonds, as reported to Parliament.
Data from the Commerce and Industry Ministry shows diamond exports dropped from $25.48 billion in 2021-22 to $18.37 billion in 2023-24, while imports also declined from $28.86 billion to $23 billion during the same period.
Piyush Goyal, the Commerce and Industry Minister, noted, “The diamond sector has been facing challenges due to reduced demand in major export destinations and supply-side issues such as G7 Sanctions on Russian-origin diamonds.”
He further emphasized that exports of cut and polished diamonds have been particularly affected due to global demand constraints.
In response, the Department of Commerce, along with industry stakeholders like the Gems and Jewellery Export Promotion Council (GJEPC), has launched initiatives to target new markets, diversify product offerings, and strengthen existing export relationships.
The diamond industry in India involves over 7,000 companies, primarily based in Surat, Gujarat, and Mumbai, Maharashtra. These companies, many of which are small and medium-sized family businesses, form the backbone of the sector.
India’s diamond industry directly employs around 1.3 million people, with Surat home to nearly 8,00,000 workers, solidifying its position as a global leader in diamond cutting and polishing. The sector also supports various related industries, including logistics, transportation, retail, and equipment manufacturing for diamond processing.
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