India's exports of cut and polished diamonds (CPD) may end the fiscal with a decline of around 15 per cent, according to a CareEdge Ratings' report.
The agency attributes the recent steep fall in exports to the prevailing high inflationary pressures across major diamond-consuming markets. Consequently, India's CPD exports plunged 32 per cent during the first four months of the current fiscal as compared to the corresponding period a year ago. The agency expects the country's CPD exports to decline about 10-15 per cent to about $19 bn this fiscal.
As per the report, while natural diamond is going through a temporary disruptive phase, green shoots appear in the Lab-Grown Diamond (LGD) segment.
Exports of LGD jumped around 41 per cent in the last four years ending FY23, as these are much cheaper than natural diamonds. Given the favourable demand outlook, coupled with large additions of capacities, LGD exports are expected to cross $3 bn by FY26.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
