As per a report by Gem & Jewellery Export Promotion Council, India's diamond exporters are looking at a dull year as demand from China and the U.S. remains weak. U.S and China are the main markets for India.
India, reported a 10% decline in cut and polished diamond exports to $22 billion in FY23. This, due to the inconsistent supply of raw diamond by Russia and a softer demand in key global markets.
"It is going to be a difficult year. Elevated inflationary pressures in the US, China’s slower-than-expected recovery after pandemic restrictions lifted, and volatile gold prices will make it tough and challenging for Indian diamond merchants", said Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council in an interview to Bloomberg.
Vipul Shah also said that the council has spoken to the Indian government to resolve a payment issue with regard to procuring rough-gem supplies from Russia. However, as per Shah, the slowdown in US economy and consumer demand remains a major challenge.