The largest decline of diamond and jewelry exports in years was recorded in Surat diamond hub - the Special Economic Zone of India (Special Economic Zone - SEZ).
According to the recent data, there was a "staggering 64% decline" in diamond and jewelry exports in 2023-24 compared to the same period of 2021-22. As noted, this marks the biggest drop in export value for Surat SEZ, even surpassing the declines caused by the COVID-19 pandemic.
In 2023-2024, exports of diamonds, precious stones and jewelry from SEZ reached $1.65 billion, a decrease of 52% compared to $3.18 billion a year earlier. Compared to 2021-2022, the reduction in exports reached 64%.
Industry leaders attribute the difficulties to the geopolitical situation in the world and the global economic crisis, but experts point to another pressing problem - competition from lab-grown grown diamonds. These stones, they believe, pose a serious threat to Surat SEZ's dominance in key markets such as the US, Europe, Latin America and China.
"Lab-grown diamond jewelry is becoming a major competitor to natural diamond jewelry," says a leading diamond company owner in Surat. "Consumers, particularly in the US and China – India's biggest diamond markets – are increasingly opting for lab-grown diamonds due to their significantly lower prices, often more than 90% cheaper than natural diamonds." This shift in consumer preference is posing a serious threat to the traditional diamond industry in Surat.
According to diamond industry analyst Aniruddha Lidbide, the situation in Surat reflects the general trend in the global diamond market. “As lab-grown diamond technologies continue to advance, the cost gap between them and natural diamonds is narrowing,” he explained. “This, coupled with growing environmental concerns surrounding natural diamond mining, is influencing consumer choices.”
Diamonds and jewelry account for more than 95% of Surat SEZ's annual exports, highlighting the industry's critical role in the zone's economic activity.
Hélène Tarin, Editor in Chief of the Asian Bureau, Rough&Polished
