India’s rough diamond imports fall 27% even as gem and jewellery exports rebound 26% in June

India’s gem and jewellery trade showed a split picture in June: exports rebounded sharply while rough diamond imports kept falling. Gross exports jumped 26% year-on-year to $2.2 billion, up from $1.7 billion a year ago, even as rough diamond imports declined 27% to $700 million from $961 million.

The import slowdown was even steeper over the April-June quarter, with rough diamond imports plunging 32% to $2.1 billion and volumes falling 15% to 228 lakh carats from 270 lakh carats. Industry sources said the lower inflow of rough stones would help balance supply and support prices for cut and polished diamonds in the months ahead.

Overall gem and jewellery imports, in contrast, rose 10% to $1.7 billion in June. On the export side, cut and polished diamond (CPD) exports climbed 8.7% to $847 million from $779 million, while lab-grown diamond exports surged 52% to $101 million for the month and 14% to $296 million for the quarter.

An industry expert said the stabilisation of natural diamond prices was the key positive signal, indicating that demand is returning to the sector, with investors globally gravitating toward precious stones and metals as currencies weaken. Dinesh Navadiya, chairman of the Indian Diamond Institute, said the strong growth in studded jewellery exports is also benefiting the diamond cutting and polishing industry.

Gold jewellery was the standout category for the month, with exports soaring 54% to $1.087 billion — studded gold jewellery exports surged 85% to $634 million and plain gold jewellery exports rose 25% to $454 million. For the full April-June quarter, though, overall gold jewellery exports slipped 2%, as a 20% rise in studded exports was offset by a 23% decline in plain gold jewellery exports.

Silver and platinum jewellery also posted strong gains for the quarter, with silver jewellery exports nearly doubling, while overall gem and jewellery exports for April-June remained largely flat at $6.6 billion and CPD exports for the quarter dipped 4% to $2.7 billion.

Wikimedia Commons/by Theminimalcarbon