India's Diamond Export Dilemma: Navigating Sluggish Demand and Tariff Turbulence

India's cut and polished diamond exports hit a nearly two-decade low in the 2024/25 fiscal year due to reduced demand from the U.S. and China. With exports down 16.8% year-on-year, the industry also saw a decline in rough diamond imports by 24.3%. The U.S. tariff uncertainties add to the challenges.

India's exports of cut and polished diamonds have plummeted to their lowest level in almost twenty years, driven by weakening demand from major markets like the United States and China, according to information released by a prominent trade body.

The decline underscores the vulnerability of India's diamond processing industry, which is heavily reliant on economic stability, particularly from the U.S., its largest market. Exports fell sharply to $13.3 billion, representing a 16.8% year-on-year decrease, as reported by the Gems and Jewellery Export Promotion Council (GJEPC).

The US tariffs added further challenges, as Indian exporters rushed to fulfill orders before the tariffs took effect, resulting in a temporary spike in March exports. Despite these challenges, the outlook for recovery remains bleak amid ongoing tariff issues and market instability.

(With inputs from agencies.)