‘Chinese demand to boost Indian diamond industry : GJEPC

NEW DELHI : Chutes of recovery seen in the Chinese diamond market, which is second only to the US, has sparked optimism among the Indian diamond industry, which could reshape the diamond manufacturing landscape, the Gem and Jewellery Export Promotion Council (GJEPC) officials said.

China’s economic slowdown coupled with plunging marriage rates in the country created a chilling effect in the Chinese diamond market valued at around $9 billion. Last year, China’s diamond market generated about $5.7 billion in revenue, and is expected to grow to $7.2 billion by 2030, according to market analysts.

The demand for diamonds has fallen by as much as 50% in China, while wholesale diamond prices have fallen by about 40% over the past two years, creating a major downturn in the global diamond industry especially that of India as it accounted for a third of India’s cut and polished diamond exports.

India’s gems and jewellery exports declined by 23.49% in February at $2,423 million (Rs 21,085 crore) compared to the same month of last year following a continued dip in demand in the US and China, the GJEPC data stated last week.

To boost Indian exports, the GJEPC, the apex body driving India’s export-led growth in the gem and jewellery sector, took part in the Hong Kong International Diamond, Gem & Pearl Show (DGP) early this month.

It said the Chinese diamond market is showing early signs of recovery, bringing cautious optimism to India’s diamond industry.  “The stabilising diamond prices and revival of Chinese demand are positive indicators for the global industry. India’s strong manufacturing base and adaptability position it well to capitalize on this opportunity for long-term growth,” GJEPC Chairman Kirit Bhansali said.

Source : PTI