Editor’s Note
This report from Mumbai highlights a significant downturn in India’s diamond trade, driven by reduced global demand. The resulting price drops and production cuts underscore broader economic pressures affecting luxury goods ahead of key seasonal demand periods.
Nearly 95 percent of the diamond trade is conducted in Mumbai, and these days, the Indian diamond market is experiencing a sluggish atmosphere. After a decline in exports due to reduced global demand, real diamonds have become up to 30 percent cheaper, and now clouds of concern are beginning to appear over this trade as well. The industry, which had already reduced manufacturing production hours, is also facing a downturn regarding new orders for Christmas.
A trader, on condition of anonymity, stated that the US, the largest buyer of diamonds, believes that the finished goods coming to the US from India are actually operated by Russia’s Alrosa. In this context, it is being said that since the US has imposed sanctions on Russia, America may halt the import of diamonds above 1 carat from India starting January. This is the reason why, due to the unclear situation on this matter, a shadow is being cast on new orders.
This was stated by Siddharth Sacheti, CEO of Jaipur Gems.
However, Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), explained that the situation regarding what will happen next with diamonds coming from Russia is still not clear. Yes, it is certain that Western countries do not want to finance Russia’s diamond business. The industry, together with the government, is trying to find a better way out of this. So far, the talk of sanctions from the US and other developed countries is not clear. If this happens, the industry will focus on India along with other emerging markets like Vietnam and Cambodia.
Real diamond fades in front of lab-grown diamond, business falls by up to 10 percent.