The Centre has acknowledged challenges impacting India’s gem and jewellery industry, specifically the export of cut and polished diamonds, during a response in Parliament. Minister of State for Commerce and Industry, Jitin Prasada, highlighted two significant issues: declining demand in major export markets such as the United States, China, and West Asia, and supply-side constraints exacerbated by G7 sanctions on Russian-origin diamonds.

The minister was answering to questions asked by Lok Sabha MPs Dineshbhai Makwana and Parshottambhai Rupala.

The global economic slowdown has weakened consumer demand, particularly in high-value markets, creating a challenging environment for India’s diamond exporters. Supply chain disruptions caused by sanctions on Russian diamonds—critical for the global diamond trade—have further strained the industry.

To address these issues, the Department of Commerce, in collaboration with stakeholders like the Gems and Jewellery Export Promotion Council (GJEPC), is implementing targeted measures. These include exploring new markets and diversifying product offerings while maintaining India’s strong presence in traditional markets.