According to preliminary data from the Gem & Jewellery Export Promotion Council (GJEPC), India’s diamond imports saw a significant drop in August 2024, with a staggering 54% decrease in volume compared to the same month in 2023. India imported 5.6 million carats of diamonds during this period, underscoring the ongoing global shifts within the diamond market. In terms of value, however, the narrative differs, with the imports for August 2024 estimated at $672 million. This figure marks a 49% increase in value compared to August 2023, reflecting adjustments in pricing and demand for higher-value stones, as well as global supply chain shifts affecting both natural and synthetic diamonds.

Industry Impact and Global Market Reactions The decline in diamond imports is part of a broader industry trend. In July 2024, India’s diamond imports were already down by 31% in volume and 17% in value year-on-year. August’s data suggests a continuation of this decline, exacerbated by market adjustments and a global oversupply of polished diamonds. Several major global diamond producers have also taken steps to tighten supply. De Beers, which has already cut its production forecast twice this year, cancelled its regular trading session in August, postponing sales until later in 2024. This decision was aimed at helping diamond cutters release excess stock, with the hope of reinvigorating rough diamond purchasing. Other industry players, such as Petra Diamonds and Rio Tinto, have also delayed or cancelled tenders, further contributing to the current supply shortage.

In August, one of India’s largest diamond manufacturers, Kiran Gems, temporarily halted production for 10 days as part of an industry-wide effort to respond to falling demand and excess inventory.

Lab-Grown Diamonds and Export Performance

India’s imports of lab-grown rough diamonds, which are increasingly significant in the global market, were valued at $119 million in August 2024, down 12% from the previous year. This decline reflects a slowdown in the synthetic diamond segment, despite its rising popularity. India’s diamond exports also saw a reduction, with 1.34 million carats exported in August 2024, a 22% year-on-year decrease. In value terms, exports totalled $1.04 billion, down 24% compared to the same period last year. Synthetic diamond exports similarly experienced a 15% decline, amounting to $99 million in August.

Outlook for the Future

India remains a dominant player in the global diamond industry, responsible for producing 95% of the world’s polished diamonds. However, the August import and export data highlights the challenges faced by the sector, with fluctuations in both demand and supply continuing to impact the market.

As the world’s largest importer of rough diamonds—particularly small diamonds sourced from Russia—India’s diamond industry is closely watching market developments, with a keen eye on potential recovery strategies. As producers and manufacturers strive to balance supply and demand, the industry’s future will likely be shaped by continued adjustments in global diamond production and distribution.