Escalating conflict in West Asia has disrupted India’s $30 billion gem and jewellery industry, halting diamond shipments and logistics through Dubai. For overseas buyers, this means potential delays in jewellery orders, tighter rough diamond supply, and rising freight costs that could impact pricing and lead times for imports from India.
Supply-chain impact
The conflict has caused widespread flight cancellations and airspace restrictions across West Asia, severely affecting cargo and passenger flights through Dubai—a critical hub for rough and polished diamond trading. India’s jewellery exports and rough diamond imports have slowed or temporarily halted as a result. The Middle East accounts for nearly a quarter of India’s annual gems and jewellery exports, and the UAE supplies over two-thirds of India’s rough diamond imports. Manufacturing centers like Surat and Mumbai, which rely on steady rough stone inflows, are directly affected.
What buyers should watch
Industry executives report that shipments have slowed significantly as buyers and sellers delay transactions amid logistics and market uncertainty. With Dubai serving as both a major consumer market and global trading hub, the suspension of cargo activity is likely to weigh on India’s export performance in the coming months. Overseas importers and private-label brands should monitor lead times for orders from Indian suppliers and consider alternative sourcing options or buffer inventory to mitigate potential disruptions.
Compliance and logistics signals
The crisis adds to existing pressures from subdued global demand and other geopolitical tensions. Prolonged instability in West Asia could further strain supply chains, raise freight costs, and create additional uncertainty for exporters and manufacturers. Buyers should stay informed about airspace restrictions and cargo flight schedules through Dubai, as these directly affect the movement of diamonds and jewellery between India and international markets.
China sourcing context
While the disruption primarily impacts India, it may shift some sourcing demand to China for certain jewellery categories, such as sterling silver, stainless steel, and gold-plated brass items, which are less dependent on rough diamond supply chains. However, buyers should note that China’s jewellery supply chain is also exposed to global logistics disruptions, and freight costs may rise across the board.
Source: Read the original report | Published: March 07, 2026