India’s Diamond Polishing Industry Faces Decadal Low: Crisil Report

India's diamond polishing industry is expected to see a significant decline in revenue to around USD 12 billion this fiscal year. Crisil Ratings attributes this decline to muted demand in major export markets, falling prices due to oversupply, and a shift in consumer preference towards lab-grown diamonds.

According to Crisil Ratings, India's natural diamond polishing industry is set to see its revenue dip to a decade-low of approximately USD 12 billion this financial year.

The decline is attributed to three main factors: muted demand in key export markets such as the US and China, a fall in prices driven by oversupply, and a consumer shift towards more affordable lab-grown diamonds that closely resemble natural ones.

This will mark the industry's third consecutive fiscal year of declining revenues. Facing a buyers' market, polishers are limiting their purchases of rough diamonds, compounded by miners reducing production to help stabilize falling prices. Sluggish US demand has impacted India's diamond exports, while China is seeing a growing preference for gold jewelry as a safer investment. Additionally, the youth in these markets are increasingly opting for lab-grown diamonds due to limited disposable incomes.

(With inputs from agencies.)