China’s sluggish recovery from COVID-19 lockdowns is significantly impacting India’s diamond exports, according to Vipul Shah, chairman of India‘s Gem and Jewellery Export Promotion Council (GJEPC).
“We’re battling weak demand, particularly due to China’s slow recovery from COVID-19. As a result, demand continues to fall,” Shah told Reuters, as quoted by IDEX Online. China accounts for about a third of India’s polished diamond exports.
In May, India’s polished diamond exports fell nearly 15%, dropping to $1.47 billion.
The GJEPC is urging the Indian government to allow direct sales of rough diamonds in Special Notified Zones (SNZs) instead of just viewing sessions. They also advocate for the reintroduction of the diamond import license to facilitate the movement of cut and polished diamonds across borders. Additionally, they are calling for a reduction in duties on gold, silver, and platinum (currently at 15%, 10%, and 12.5% respectively) to a flat rate of 4%.
