ENA Sectors 2024-07-05 15:22:18 <p><span style="font-size:14px"><strong>New Delhi, Jul 5 (KNN)</strong> India's cut and polished diamond exports are experiencing a significant downturn, primarily due to weak demand from China, a key market for the industry.</span></p> <p><span style="font-size:14px">Vipul Shah, Chairman, Gem and Jewellery Export Promotion Council (GJEPC), has indicated that the sector is unlikely to stabilise without government support.</span></p> <p><span style="font-size:14px">As the world's largest centre for diamond cutting and polishing, India processes approximately 90 per cent of globally polished diamonds.</span></p> <p><span style="font-size:14px">However, recent data shows a concerning trend. Cut and polished diamond exports fell nearly 15 per cent in the June quarter compared to the previous year, following a 27.5 per cent decline in the 2023/24 marketing year ending March 31.</span></p> <p><span style="font-size:14px">China, which accounts for about a third of India's cut and polished diamond exports, has seen reduced demand due to several factors.</span></p> <p><span style="font-size:14px">These include a slow economic recovery post-COVID-19, shifting consumer preferences towards gold jewellery, and a decrease in wedding celebrations.</span></p> <p><span style="font-size:14px">In response to these challenges, the GJEPC has appealed to the government for concessions in this year's budget.</span></p> <p><span style="font-size:14px">Key requests include allowing the sale of rough diamonds in Special Notified Zones (SNZs) and permitting globally recognised diamond trading houses to operate from these zones.</span></p> <p><span style="font-size:14px">Currently, unlike competitors in Belgium and Dubai, Indian bidders cannot purchase rough diamonds from SNZs due to the absence of a tax waiver.</span></p> <p><span style="font-size:14px">The industry's struggles have led to a reduction in rough diamond imports by Indian diamond units, attributed to both weak demand for polished diamonds and pressure on margins caused by softening prices.</span></p> <p><span style="font-size:14px">This downturn is particularly significant given that India's gems and jewellery industry employs over 4.3 million people and contributes more than 10 per cent to the country's goods exports.</span></p> <p><span style="font-size:14px">The sector's recovery remains uncertain without targeted interventions and improvements in global market conditions.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 38484 https://knnindia.co.in/news/newsdetails/sectors/indias-diamond-export-industry-faces-major-setback-amidst-weak-chinese-demand 2024-07-05 15:22:18 knnindia.co.in