Mumbai: India’s diamond industry has been affected due to a 40 per cent fall in demand from slowdown-hit China, industry body GJEPC said.
“We are feeling the pinch of slowdown in Chinese demand for diamond jewellery. Our market share in China has come down by 40 per cent due economic slowdown,” Gem and Jewellery Export Promotion Council (GJEPC) Chairman Vipul Shah told PTI.
India exports mostly polished diamond jewellery to China. “Things have not been great since April as demand has been continuously falling not only in China but other markets as well due to strengthening of the US dollar against other currencies,” he said.
Falling demand in China and other markets like Middle East due to weak economy has forced domestic traders to cut down production and jobs, he added.
“Right now, there is over dependence on the US market. We are pushing exports to the US markets. All other markets are also difficult right now because world economy is disturbed. Most currencies are trading down as compared to the US dollar,” he said.
As per the GJEPC data, India’s export of cut and polished diamonds dropped by 13 per cent to Rs 9,625.57 crore in July this year, as against Rs 11,126.02 crore in the year-ago period.
In volume terms, the shipments of cut and polished diamonds fell to 27.97 lakh carats from 32.62 lakh carats in the said period.