Diamond sector facing challenges due to reduced demand: Piyush Goyal

NEW DELHI: India's diamond industry has been struggling in the past three years, with declining demand in key export markets and complications arising from G7 sanctions against Russia, as reported to Parliament.

Diamond exports decreased to $18.37 billion in 2023-24 from $25.48 billion in 2021-22, according to a written statement to the Rajya Sabha by Piyush Goyal, Commerce and Industry minister. Similarly, imports fell to $23 billion from $28.86 billion during the same period.

"Yes, 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," Goyal said.

Additionally, the Union minister in another response said that cut and polished diamond exports are experiencing a downturn due to reduced demand.

"Department of Commerce, in tandem with industry stakeholders including Gems and Jewellery Export Promotion Council (GJEPC), 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," he said.

The sector includes more than 7,000 organisations engaged in diamond cutting, polishing, and exportation activities. These enterprises are primarily situated in Surat, Gujarat, and Mumbai, Maharashtra, with small and medium-sized family businesses forming the majority.

Current estimates indicate that the Indian diamond sector directly employs approximately 1.3 million people. Surat is particularly significant, employing about 8,00,000 workers, establishing itself as the global leader in diamond cutting and polishing operations.

The sector's influence extends beyond direct employment, generating numerous positions in associated industries including logistics, transportation, retail, and equipment manufacturing for diamond processing.