The Indian diamond trade, which has been under pressure recently, is now concerned over the fresh tensions between the US and China. According to a report in the Economic Times quoted by Rough & Polished, Indian diamond exporters “have reduced capacity utilization of their cutting and polishing units by 40%” following “a slowdown in global diamond sales over the last three months.”
While the US is the largest importer of diamonds from India, China is the second largest market of Indian cut and polished diamonds.
Vipul Shah, chairman of Gem & Jewellery Export Promotion Council (GJEPC), said: “We do not know how the geopolitical tension will pan out in the coming days. Both the US and China are important markets for us.”
Shah also spoke of “a slowdown in the offtake of cut and polished diamonds from India to the US. Due to a slowdown in the export market, cutting and polishing units in Surat are now working at 60% capacity and the working days have been brought down to 4-5 days a week.”
