NEW DELHI, Sep 18 : India’s diamond sector is facing a severe crisis as both imports and exports have sharply declined in the past three years, which has triggered defaults, factory closures, and widespread job losses, think tank GTRI said on Wednesday. It said that while export returns have surged, a large inventory of unprocessed rough diamonds is piling up due to reduced orders and growing competition from lab-grown diamonds. “This has triggered defaults, factory closures, and widespread job losses.
Tragically, more than 60 people in Gujarat’s diamond sector have committed suicide, reflecting the severe financial and emotional strain India’s diamond sector is facing,” Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. He said that immediate action is essential to address these problems and safeguard the future of the sector. According to the think tank data, a 24.
5 per cent drop in rough diamond imports from USD 18.5 billion in 2021-22 to USD 14 billion in 2023-024 shows weaker global markets and fewer processing orders. After adjusting for re-exported rough diamonds, net imports declined by 25.
3 per cent, from USD 17.5 billion to USD 13.1 billion, indicating reduced demand for processing in India.
Exports of cut and polished diamonds fell by a higher margin of 34.6 per cent, from USD 24.4 billion in FY 2022 to USD 13.
1 billion in FY 2024, it said. “Additionally, the share of unsold diamonds returned to India increased from 35 per cent to 45..