According to projections from Mumbai-based CareEdge Ratings, India is expected to experience a significant downturn in cut and polished diamond exports, reaching a five-year low in the current financial year, with little hope for recovery in FY2025, IDEX Online reports.
CareEdge Ratings expect a decline of 25%-30%, with export figures ranging between $15 billion and $16 billion. This forecast is based on the assessment of companies representing over a third of India’s diamond market.
Despite reaching a peak of $24.43 billion in FY2022, diamond exports have sharply fallen to $13.04 billion in the first 10 months of FY2024. CareEdge attributes this decline to economic slowdowns in the US and Chinese markets, which collectively account for 65% of India’s diamond exports. The rising popularity of lab-grown diamonds and the impact of G7 sanctions on Russian diamonds are additional contributing factors.
Yogesh Shah, senior director, said: “Players operating in smaller carat diamonds (below 0.3 carats) to be better placed than entities dealing in certified diamonds, as smaller carat diamonds have witnessed lower price erosion and limited impact of LGD diamonds”.