India’s diamond polishing industry is expected to experience a 30-35% revenue decline to $14-15 billion in the current fiscal year, according to a report by rating agency CRISIL quoted by Rough & Polished.
This decline is primarily due to weak demand from major markets, including the US, EU, and China, which collectively make up 75% of India’s polished diamond exports. CRISIL has added that, although there is typically increased demand in the second half of the fiscal year due to holidays like Thanksgiving, Christmas, and the Chinese New Year, it’s unlikely to fully offset the industry’s current challenges. As a result, the Indian diamond industry is expected to contract by more than a third on an annual basis in this fiscal year.
Additionally, a report by the Botad Diamond Association, quoted by IDEX Online, claims that over 40% of approximately 1,500 diamond factories in Botad, India, have closed due to the global demand downturn. An additional 20% are anticipated to cease operations once the Navratri festival concludes. The diamond cutting and polishing industry in Botad and its neighboring villages employs around 70,000 people.
