DiamondBuzz
CRISIL RATINGS: Diamond Exports dip ~10% this fiscal as tariffs take effect
The 10% additional tariff levied by the US, which accounts for nearly a third of Indian natural diamond exports, will exacerbate the impact on Indian diamantaires from already-subdued demand and intensifying competition from lab-grown diamonds (LGDs), which closely resemble natural diamonds and cost much less. In the milieu, export revenues of diamantaires will decline ~8-10% in fiscal 2026.
That said, calibrated inventory management across the value chain will support realisations, thus helping reduce the decline in export revenues, and limit the erosion of operating margins, helping contain the players’ financial leverage and credit metrics.
A Crisil Ratings analysis of 43 diamantaires, accounting for nearly one-fourth of the industry revenues, indicates as much.
In fiscal 2025, the export volumes of natural diamonds remained constrained by lower demand from China and competition from LGD in the US. Although polishers pushed sales in the fourth quarter to avoid tariffs and price erosion was limited, revenues from natural diamond exports fell 17% to ~$13.3 billion.

Says Rahul Guha, Senior Director, Crisil Ratings, “This fiscal, realisations on natural diamonds are poised to rebound 3-4% amid limited inventory across the value chain as diamantaires are aligning their rough purchases with visibility in sales of polished diamonds. Additionally, production cuts by miners will curtail price erosion. This contrasts with LGD, whose prices may reduce from a tenth of the price of natural diamonds last fiscal to a twelfth in the current fiscal, resulting in a wider price gap between natural diamonds and LGD.”
The rising price gap, in turn, could shave a further 12-14% off natural diamond export volumes, marking a third consecutive year of weak demand after an aggregate degrowth of 32% in the last two fiscals. That will make it difficult for the natural diamond polishers to pass on any tariff-led price hikes to customers. For the record, India will remain the primary port of call for polishing diamonds.
Says Himank Sharma, Director, Crisil Ratings, “Natural diamond polishers, traditionally operating at thin margins of 4-5%, will have limited ability to absorb the tariff-induced price rise. As a result, miners and retailers may need to step in to absorb some of the price shocks. Consequently, we believe the operating margins of polishers may dip 20-30 basis points to 4.3-4.5% this fiscal.”

Credit profiles of diamantaires might witness some working capital respite as weak demand will lead to a further 5-7% cut in inventory levels across the value chain (after a 10-15% decline last fiscal). This will limit the need for debt-funded working capital, although receivables from export customers will remain monitorable amid tepid demand, geopolitical issues and global uncertainties.
As a result, diamantaires’ financial leverage – total outside liabilities to adjusted networth – and interest coverage will remain rangebound at ~0.8 time and ~2.5 times, respectively, this fiscal.
All said, slowing demand for natural diamonds in key geographies, intensifying competition from LGDs, potential revisions in tariffs and rising geopolitical tensions will bear watching.
DiamondBuzz
Botswana At 60: Diamond Leadership Takes Its Place On The World Stage
Diamond Embedded World Athletics Relays Medals Connect Botswana’s Natural Diamond Provenance, Local Enterprise, Creative Industry and Sport Diplomacy.
The Government of Botswana, in collaboration with the Diamond Sector, today launched the 60 Years of Diamond Leadership Initiative and unveiled the diamond-embedded medals for the Debswana World Athletics Relays Gaborone 26 at the Botswana National Museum.
This moment marks a defining shift in Botswana’s diamond journey: from resource extraction to global reputation; from mineral value to public value; and from provenance to purposeful international engagement through sport, culture, tourism, and local enterprise.
The initiative brings together key players across the diamond value chain, including Okavango Diamond Company, De Beers Group, Debswana Diamond Company, Diamond Trading Company Botswana, Lucara Botswana, and KGK Diamonds, working through the House of Botswana. Within this collective effort, ODC’s partnership with Ankit Gems and SRK, who covered the cost of polishing the Botswana natural diamonds, alongside Nungu Diamonds, demonstrates how collaborative investment can connect diamond polishing, jewellery-making capability, creative industry development, and sport-for-development impact.
“Today, Botswana stands as a benchmark for ethical luxury, where diamonds are valued for their integrity, their traceability, and their contribution to national development.” — Hon. Bogolo Kenewendo, Minister of Minerals and Energy
Speaking at the launch, Hon. Bogolo Kenewendo, Minister of Minerals and Energy, said:

Botswana’s next chapter is anchored on advancing provenance, deepening socio-economic impact, expanding citizen participation across the value chain, and accelerating downstream development.
In remarks delivered at the event, Advocate Duma Gideon Boko, President of the Republic of Botswana, reflected on the broader national significance of diamonds, noting their contribution to infrastructure, healthcare, education, and Botswana’s global standing. The President positioned the World Athletics Relays Gaborone 26 as a platform of resilience, growth, and excellence, and as a moment through which Botswana can host the world with confidence.
The unveiling of medals featuring Botswana’s natural diamonds, sponsored and produced through ODC, provides a powerful symbol of this ambition. The medals connect the excellence of athletes with the discipline, resilience, and value of natural diamonds, allowing Botswana’s story to travel globally through sport. The sponsorship reinforces ODC’s commitment to ensuring that diamonds do more than shine: they must create visibility, build enterprise, support national development, and open new pathways for economic impact.

The launch also foregrounded Botswana’s creative economy. The Main Gallery featured artworks by local artists, giving the event a distinctly Botswana visual language and affirming that diamond leadership must also create space for culture, creativity, and local talent to be seen on national and international platforms.
One of the initiative’s enterprise-development highlights is the Tokafala-supported Leteise Tote Bag project. Through the programme, Debswana has supported the training of 34 textile operators across Botswana, the majority of whom are women, including participants from mining communities such as Boteti. Curated by AfroFusion, the tote bags will represent Botswana’s heritage at international trade fairs and global engagement platforms.
Delivering the Vote of Thanks, Hon. Jacob Kelebeng, Minister of Sport and Arts, acknowledged the collective effort behind the moment and the significance of bringing the world to Botswana. He thanked Batswana, the diamond sector, sponsors, organisers, and partners whose support continues to strengthen sport as a platform for national pride, unity, and international visibility.
The diamond sector’s contribution to the Debswana World Athletics Relays Gaborone 26 reinforces a broader national principle: mineral value, when managed with intention, can be transformed into public value, supporting sport development, local enterprise, tourism linkages, creative industry growth, and Botswana’s global positioning.
As Botswana marks 60 years of independence and diamond leadership, this initiative signals a more confident and coordinated approach to telling the country’s story: one that links origin to impact, natural wealth to shared progress, and Botswana’s diamonds to the world’s imagination.
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