By our Commercial Correspondent
New Delhi: India’s diamond sector is facing a severe crisis as both imports and exports have sharply declined in the past three years, triggering defaults, factory closures, and widespread job losses, think tank Global Trade Research Initiative’s Founder , Ajay Srivastava said here on Sept 18.
It said while export returns had surged , a large inventory of unprocessed rough diamonds was piling up due to reduced orders and growing competition from lab-grown diamonds.
“This has triggered defaults, factory closures and widespread job losses. Tragically, more than 60 people in Gujarat’s diamond sector have committed suicide, reflecting the severe financial and emotional strain India’s diamond sector is facing,”, Srivastva said.
He said immediate action was essential to address these problems and to safeguard the future of the sector.
According to GTRI data, a 24.5 per cent drop in rough diamond imports from $18.5 billion in 2021-22 to $14 billion in 2023-24 showed weaker global markets and fewer processing orders. It added that some challenges of the sector stemmed from regulatory issues and internal inefficiencies within the industry.
