In the first half of 2024, India has significantly increased its diamond imports from Russia, defying global trends and reaffirming the strength of the bilateral trade relationship between the two nations. According to data analysis, diamond exports from Russia to India surged by 22% compared to the same period last year, with a total of 4.1 million carats being shipped. Notably, the majority of these imports (77%) comprised gem-quality diamonds, underscoring India’s position as a key player in the global diamond industry. However, despite the rise in volume, the financial value of these imports has seen a decline.

The total value of Russian diamond shipments to India dropped by 15%, amounting to $520 million during the January-June 2024 period. A further decline was observed in June, where the monetary value decreased by 1.6 times to $39.6 million. This discrepancy is attributed to a sharp decrease in the price of gem-quality diamonds, which fell by 43% to $161.3 per carat. This increase in Russian diamond imports is particularly notable given the overall contraction in India’s diamond market. The country’s total diamond imports for the first half of the year saw a slight decline of 0.3%, with a total of 65.8 million carats imported. The month of June recorded a steeper year-on-year drop of 14%, with only around 10 million carats entering the country.

The global diamond market is currently facing stagnation, marked by falling prices and reduced production levels. These factors have had a significant impact on both the export and import dynamics within the industry. Russia, a major diamond producer, has also cut back on its production and exports over the past year, reflecting the broader challenges in the market.

Despite these global headwinds, the increase in diamond trade between India and Russia highlights the resilience and strategic importance of their economic partnership. As the global diamond industry continues to navigate a complex landscape, this development could signal a reorientation of trade flows and market strategies in the coming years.