The Indian diamond industry is beginning to see a glimmer of hope as signs of recovery emerge in China’s diamond market, potentially paving the way for a positive shift in the global diamond manufacturing landscape, as per agency report. A senior official from the Gem and Jewellery Export Promotion Council (GJEPC) shared that the improving sentiment in China could benefit India's significant diamond processing sector.
China's diamond market, estimated to be worth around USD 9 billion, has faced sluggishness in recent years due to the country’s economic slowdown and a declining marriage rate. In 2024, the Chinese diamond sector generated approximately USD 5.7 billion in revenue. Market analysts predict a gradual rise, expecting the market to grow to around USD 7.2 billion by 2030.
Over the past two years, demand for diamonds in China has dropped by up to 50 percent, while wholesale diamond prices have fallen nearly 40 percent. These developments have had a direct impact on India, which accounts for roughly one-third of the global trade in cut and polished diamonds.
According to GJEPC data released last week, India’s gem and jewellery exports fell by 23.49 percent year-on-year in February 2025, amounting to USD 2.42 billion. The drop is attributed to weakening demand in both the US and Chinese markets.
Kirit Bhansali, Chairman of GJEPC, stated that stable diamond prices combined with signs of recovery in Chinese demand are encouraging indicators for the global industry. He added that India’s strong manufacturing base is well positioned to take advantage of this opportunity.
GJEPC Vice Chairman Shaunak Parekh noted that after a prolonged downturn, sales are beginning to stabilize, and this renewed demand could potentially reshape India’s diamond manufacturing sector in the coming months.
