India’s Diamond Exports: Overcoming Challenges with Vanesight Trade Data

India has long been a dominant force in the global diamond trade, renowned for its expertise in cutting, polishing, and exporting diamonds. Nearly 90% of the global diamond polishing market is accounted for by India, the major hub for diamond processing worldwide. The country’s diamond export industry is a cornerstone of its economy, contributing significantly to foreign exchange earnings and employment. In this blog, we’ll delve into India’s diamond export landscape, exploring key data, top trading partners, major companies, and emerging trends like lab-grown diamonds.

India’s Role in the Global Diamond Trade

India is not just a major exporter of diamonds but also a critical player in the global supply chain. According to global import export data providers, In the fiscal year 2023-2024, India’s cut and polished diamond exports experienced a significant decline, totaling approximately $15.97 billion. This represents a 27.5% decrease compared to the previous year, primarily due to sluggish demand in key markets such as the United States, China, and the United Arab Emirates. The country imports rough diamonds from mining nations, processes them in centers like Surat, Mumbai, and Jaipur, and exports polished diamonds to markets worldwide.

Top 5 Countries for Diamond Exports from India

India’s diamonds reach every corner of the globe, but a few countries dominate as key trading partners. Based on import export trade data, the top 5 destinations for Indian diamond exports are:

1. United States: The largest buyer of Indian diamonds, accounting for over 40% of exports.
2. Hong Kong: A major trading hub for diamonds and jewelry in Asia.
3. Belgium: Home to Antwerp, the world’s diamond trading capital.
4. UAE: A growing hub for diamond re-exports and trade.

Israel: A key player in the global diamond supply chain.

Top 5 Buyers and Suppliers of Diamonds in India

Top 5 Buyers (Importers of Rough Diamonds):

1. Russia: The largest supplier of rough diamonds to India, primarily through Alrosa.
2. Botswana: A major source of high-quality rough diamonds.
3. Canada: Known for ethically sourced diamonds.
4. South Africa: A historic supplier of rough diamonds.
5. Angola: An emerging source of rough diamonds for India.

Top 5 Suppliers (Exporters of Polished Diamonds):

1. United States: The largest consumer of polished diamonds from India.
2. Hong Kong: A key re-export hub for Indian diamonds.
3. Belgium: A major destination for high-value polished diamonds.
4. UAE: A growing market for Indian diamond jewelry.
5. China: Increasing demand for diamonds in the luxury market.

Top Export/Import Companies in India

India’s diamond trade is driven by a mix of large corporations and small-to-medium enterprises. Some of the top companies in the industry include:

1. Rajesh Exports Ltd.: One of India’s largest diamond exporters.
2. Rosy Blue India: A global leader in diamond manufacturing and trading.
3. Kiran Gems: A major player in the diamond cutting and polishing industry.
4. Asian Star Co. Ltd.: Known for its high-quality diamond exports.
5. S. Schnitzer Diamonds: A leading exporter of polished diamonds.

Global Trade Issues Affecting India’s Diamond Industry

Despite its strong position, India’s diamond export industry faces several challenges:

1. Geopolitical Tensions: Sanctions on Russian diamonds (a major source for India) have disrupted supply chains.
2. Economic Slowdown: Global recessions and inflation have reduced demand for luxury goods like diamonds.
3. Competition from Lab-Grown Diamonds: The rise of lab-grown diamonds is impacting the natural diamond market.
4. Regulatory Compliance: Strict regulations under the Kimberley Process and other trade agreements add complexity to the industry.
5. Currency Fluctuations: Volatility in exchange rates affects profitability.

HSN Code for Diamonds in India

The Harmonized System of Nomenclature (HSN) code is used to classify goods for taxation and trade. For diamonds, the relevant HSN codes are:

• HS Code 7102: Natural or synthetic diamonds, whether or not worked but not mounted or set.
• HS Code 710231: Non-industrial diamonds, unworked or simply sawn, cleaved, or bruted.
• HS Code 710239: Non-industrial diamonds, worked but not mounted or set.

These codes are essential for exporters and importers to comply with GST and international trade regulations.

The Rise of Lab-Grown Diamonds

Lab grown diamonds are changing the diamond industry. These diamonds are chemically the same as natural diamonds but created in a lab using technology. India is emerging as a global leader in lab grown diamond production and export. Key points:

• Cost-Effective: Lab-grown diamonds are 30-40% cheaper than natural diamonds.
• Environmentally Friendly: They have a lower environmental impact compared to mining.
• Growing Demand: Younger consumers are increasingly opting for lab-grown diamonds due to their ethical and sustainable appeal.

India’s lab grown diamond exports are growing exponentially and the US is the largest market. Companies like Greenlab Diamonds and Ethereal Green Diamond are way ahead in this segment.

The Role of Global Import Export Data Providers

For businesses in the diamond trade, access to accurate and timely import export trade data is crucial. Global import export data providers offer insights into market trends, pricing, and demand-supply dynamics. These platforms help Indian exporters and importers make decisions, find new markets and stay competitive. Key benefits include:

• Market Analysis: Identify top buyers and suppliers.
• Trade Compliance: Ensure adherence to international regulations.
• Competitive Intelligence: Track competitors’ activities.
• Supply Chain Optimization: Streamline sourcing and distribution.

Conclusion

India’s diamond export industry is a testament to the country’s manufacturing and trade capabilities. Despite challenges like geopolitical tensions and the rise of lab-grown diamonds, the industry continues to thrive, driven by innovation and adaptability. With the right strategies and access to accurate Global import export data from platforms like Vanesight, Indian diamond exporters can maintain their leadership in the global market.

FAQ (your Question)

1 What is India’s role in the global diamond trade?

India is the world’s largest diamond processing hub, accounting for nearly 90% of the global diamond cutting and polishing market. The country imports rough diamonds, processes them, and exports polished diamonds to key markets like the US, Hong Kong, and Belgium.

 2 What are the challenges facing India’s diamond export industry?

The industry faces challenges such as geopolitical tensions, competition from lab-grown diamonds, economic slowdowns, and regulatory compliance. However, innovation and adaptability, supported by data-driven strategies, help exporters navigate these issues.

3 Why is import export data important for diamond traders?

Import export data provides critical insights into market trends, pricing, and demand-supply dynamics. Platforms like Vanesight help diamond traders make informed decisions, identify new markets, and stay ahead of competitors in a highly competitive industry.