India’s diamond exports have been significantly impacted by China’s slow recovery from COVID-19 lockdowns, according to Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC). Shah emphasized that weak demand, exacerbated by China’s sluggish economic rebound, continues to undermine the market, leading to a notable decline in polished diamond exports from India.
In May, India’s exports of polished diamonds plummeted by nearly 15 percent, amounting to $1.47 billion. The GJEPC is actively advocating for government intervention to address these challenges. They are proposing reforms such as permitting direct sales of rough diamonds in Special Notified Zones (SNZs), advocating for the reintroduction of the diamond imprest license to facilitate smoother cross-border movement of cut and polished diamonds, and urging a reduction in import duties on gold, silver, and platinum to a uniform rate of 4 percent, from current levels of 15 percent, 10 percent, and 12.5 percent respectively.
