India’s polished diamond export sector showed some signs of stabilisation in December 2024, according to data from the Gems and Jewellery Export Promotion Council (GJEPC). Gross polished diamond exports for the month totalled $773 million, a year-on-year decline of 10.4 per cent compared to December 2023. However, this marked an improvement from November 2024, which saw a sharp 40 per cent year-on-year drop to $660 million.
Export Performance Trends
December’s figures indicated a partial recovery following months of volatility in 2024. In October, the sector experienced a year-on-year increase of 11.3 per cent, with export sales exceeding $1.4 billion. This was followed by a significant decline in November. Earlier in 2024, the industry faced consistent year-on-year decreases, including a 22.9 per cent drop in September compared to the same month in 2023, when foreign sales reached $1.29 billion.
The downturn has been driven by a prolonged global decline in both polished diamond prices and demand. The effects have been particularly noticeable in Surat, India’s diamond-cutting and polishing centre, where approximately 30,000 workers have reportedly lost their jobs over the past six months.
Broader Industry Challenges
The challenges in polished diamond exports reflect trends across India’s gem and jewellery export industry. Exports for the entire sector reached just under $2 billion in December 2024, a year-on-year decrease of 10.3 per cent compared to December 2023. This highlights how broader market conditions are affecting multiple areas of the jewellery industry.
Industry Implications
India remains central to the global diamond supply chain, with Surat playing a major role in cutting and polishing operations. The ongoing difficulties in the region may have a knock-on effect for jewellery manufacturers and retailers worldwide, potentially causing supply chain challenges and price fluctuations.
For jewellers, the data underscores the need to remain adaptable in sourcing strategies and to stay alert to possible changes in diamond availability and pricing. December’s figures suggest a slight improvement from November’s steep decline, but the overall market remains unstable, emphasising the importance of careful planning in the months ahead.
Looking Forward
As 2025 begins, it remains uncertain whether December’s modest stabilisation will continue. The GJEPC data provides an important snapshot of current market conditions, but the outlook for polished diamond exports remains challenging. Jewellers may need to prepare for ongoing disruptions if global demand does not see a meaningful recovery in the near future.
