India’s diamond industry faces demand slowdown: Piyush Goyal (#1684668)

India’s diamond industry has been facing significant challenges including reduced demand for the past three years, the Union minister for commerce and industry Piyush Goyal has reported to Parliament.

“The diamond sector has been facing challenges during the last three years due to reduced demand in major export destinations and supply side issues such as G7 sanctions on Russian origin diamonds,” said Piyush Goyal, the Times of India’s business desk reported.
 
The 2024 financial year saw India’s diamond exports drop to $18.37 billion, down from $25.48 billion in the 2023 fiscal year, ET Retail reported. The country’s imports also dropped from $28.86 billion in the 2023 financial year to $23 billion in the 2024 financial year.
 
The demand for cut and polished diamond exports has dropped, according to Goyal. A drop in demand causes strain on businesses in the industry which can also lead to unemployment for workers in the sector.
 
India’s main diamond industries are located in Surat and Mumbai and the majority of businesses are small and medium sized enterprises, often run by families. The Indian diamond industry employs around 1.3 million people and its employment status also directly impacts businesses in sectors including logistics, retail, and equipment manufacturing among others.
 
“Department of Commerce, in tandem with industry stakeholders including the Gem and Jewellery Export Promotion Council, is undertaking initiatives focusing on new markets and new products, while sustaining existing major markets, to solidify India’s position in the gems and jewellery sector,” said Goyal.