India’s diamond sector is opting not to halt rough imports despite current market challenges, instead focusing efforts on stimulating demand, according to Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC). The industry, grappling with weak retail sales and mounting inventories, has seen manufacturers struggle to align production with reduced orders.
Last year, amid a downturn, GJEPC and four other Indian industry bodies suggested a voluntary two-month pause on rough diamond imports from October 15 to December 15, which helped alleviate supply-demand imbalances. However, the positive effects dwindled as manufacturers resumed rough purchases and consumer demand stagnated in early 2024.
Shah emphasized that a complete import freeze is not a viable solution, advocating instead for long-term planning. He highlighted plans for increased marketing expenditure and promotions, partnering with the Natural Diamond Council (NDC) and the Indian government.
Manufacturers have already scaled back rough diamond purchases, negating the need for further recommendations from industry groups. Despite challenges such as competition from synthetic diamonds and reduced demand from China, Indian manufacturers continue limited polished production to maintain workforce stability and access to rough supply and credit.
Shah acknowledged the importance of reviving demand in China while noting satisfactory conditions in the US market, underscored by positive feedback from events like the recent JCK Las Vegas show. He highlighted domestic sales in India as a bright spot but stressed the necessity of addressing the Chinese market downturn.
“In terms of the Chinese market, action is imperative,” Shah concluded.
