Diamond Export Decline: Industry Faces Tough Times Amid Global Demand Slump

Due to decreased demand in major markets like the US and China, cut and polished diamond (CPD) exports from India are expected to decline by 18-19% in FY25, reaching decade-low levels. The industry struggles due to inflation, changing consumer preferences, and competition from lab-grown diamonds (LGD).

Due to decreased demand in major markets like the US and China, cut and polished diamond (CPD) exports from India are expected to decline by 18-19% in FY25, reaching decade-low levels, according to a report by Rating Agency Icra.

CPD exports in India contracted by 28% in FY24 due to global macroeconomic conditions and increased competition from lab-grown diamonds (LGD). The downturn persists, with a 19% contraction in CPD exports recorded in the first four months of FY25.

The U.S. market faces inflationary pressures, and in China, consumer preferences are shifting away from diamonds. While some improvement is expected during the festive season, high inventory levels and continued pressure on polished prices are likely to offset any gains.

(With inputs from agencies.)