A recovery in the Chinese diamond market has sparked optimism among Indian diamond manufacturers, potentially reshaping the global diamond industry, according to officials from the Gem and Jewellery Export Promotion Council (GJEPC). Despite being the second-largest diamond market globally, after the United States, China’s market has faced challenges due to an economic slowdown and declining marriage rates, which have led to a significant drop in demand.
The Chinese diamond market, valued at approximately USD 9 billion, saw a downturn with revenues dipping to USD 5.7 billion last year. Analysts predict the market will recover to USD 7.2 billion by 2030. Over the past two years, diamond demand in China has decreased by up to 50%, and wholesale prices have fallen by around 40%, negatively impacting global diamond markets, including India. China accounted for about a third of India’s cut and polished diamond exports, making the downturn particularly significant for Indian manufacturers.
India’s gem and jewellery exports also took a hit, declining by 23.49% in February, totaling USD 2.42 billion (Rs 21,085.03 crore) compared to the same month last year. This decline is largely attributed to reduced demand from both the US and China, according to GJEPC data.
Related topics：