Diamond exports soften on weak demand from US and China

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Diamond exports from India are declining. The Gem and Jewelery Export Promotion Council says the situation is grim because of weak demand in the two major markets, the US and China, due to the economic slowdown.

Exports of cut and polished diamonds from India, the world’s top diamond polisher, to fall 10 per cent to $22 billion in 2022-23. This was due to short supply of rough diamonds from Russia and weak demand in major markets. Vipul Shah, president of the state-backed industry group, says these challenges still remain and the current year may see a drop in sales due to this. He said it is going to be a tough year. It will be a tough and challenging year for Indian diamond traders due to high inflationary pressures in the US and a slower than expected recovery in China. The effect of sharp fluctuations in gold prices will also be seen on this. According to him, supply is also becoming a big hurdle. While factories in Surat, an important hub in Gujarat, are not witnessing high growth in inventories. The reason is weak demand.