National News
Indian diamond industry faces continued struggles amid demand slump and tariff woes: ICRA
India’s cut and polished diamond (CPD) industry is set for another challenging fiscal year, with the recent report ICRA projecting a 7-10 per cent decline in exports in FY2026, following a 17% contraction in FY2025, weighed down by weak global demand and increasing competition from lab-grown diamonds (LGDs), the sector’s outlook remains negative.
India’s cut and polished diamond (CPD) industry is set for another challenging fiscal year, with the recent report ICRA projecting a 7-10 per cent decline in exports in FY2026, following a 17% contraction in FY2025, weighed down by weak global demand and increasing competition from lab-grown diamonds (LGDs), the sector’s outlook remains negative.
The report by ICRA indicates CPD exports fell to a 20-year low of USD 13.3 billion in FY2025, impacted by a global macroeconomic slowdown and a growing consumer preference for cheaper, ethically sourced LGDs. These now constitute 8% of polished diamond exports, up from just 1% in FY2019.
Additionally, the recent imposition of a 27 per cent reciprocal tariff by the US, a key market accounting for over a third of India’s CPD exports, adds further pressure. Although currently paused with a 10 per cent interim tariff, exporters remain wary. Many are rerouting shipments through low-tariff hubs like Dubai and Belgium to mitigate the impact.
ICRA’s report also highlights that operating profit margins for CPD firms fell by 400 basis points in FY2025 to approx. 4 per cent, with ICRA predicting a further dip to 3.6-3.7 per cent in FY2026. The working capital cycle also remains stretched, burdened by high inventory amid declining sales and cautious rough diamond procurement.
Meanwhile, prices for both rough and polished diamonds have dropped sharply, by 8 per cent and 7 per cent respectively in FY2025, while production cuts from miners like De Beers are expected to keep rough prices range-bound.
Despite minor optimism for a recovery in bridal jewellery demand in the US in H2 FY2026, sustained weakness in Chinese demand and intensifying LGD competition continue to cloud the outlook. The CPD industry may need to adapt more aggressively to shifting consumer trends and tariff realignments to regain momentum.
On the bottom line, ICRA says the credit profile of Indian CPD entities is expected to remain weak in FY2026, characterised by modest earnings and a continued stretched working cycle.
National News
‘Made In India’ Jewellery Must Become The World’s Trusted Choice: Chirag Paswan At IIJS Bharat Premiere 2026
- Union Minister Shri Chirag Paswan inaugurated the Bombay Exhibition Centre (BEC) venue of IIJS Bharat Premiere 2026.
- Calls on industry to build Brand India on trust, quality, innovation and reliability
Shri Chirag Paswan, Hon’ble Union Minister of Food Processing Industries, Government of India, today inaugurated the 42nd edition of IIJS Bharat Premiere 2026 at the Bombay Exhibition Centre (BEC), NESCO, Goregaon — highlighting the Indian gem and jewellery sector’s role in strengthening Brand India on the global stage.

Joining him as Guests of Honour were Paul Rowley, Executive Vice President, Diamond Trading, De Beers Group; K.P. Abdul Salam, Vice Chairman, Malabar Group; and Lamon Rutten, Managing Director & CEO, India Gold Metaverse Pvt. Ltd. Representing GJEPC were Kirit Bhansali, Chairman; Shaunak Parikh, Vice Chairman; and Sabyasachi Ray, Executive Director.
Addressing the gathering, Shri Chirag Paswan, Hon’ble Union Minister of Food Processing Industries, Government of India, said:
“The participation of delegates from nearly 80 countries at IIJS Bharat Premiere reflects the growing global confidence in India’s gems and jewellery industry. Under the leadership of Hon’ble Prime Minister Shri Narendra Modi, the Government is committed to introducing reforms that strengthen ease of doing business, remove bottlenecks and create new opportunities for growth. As India moves towards the vision of Viksit Bharat 2047, the jewellery sector will play a vital role.

I urge the industry to uphold the highest standards of quality and craftsmanship so that ‘Made in India’ continues to earn the trust of consumers worldwide and strengthens Brand India’s global reputation.”
Opening the ceremony, Kirit Bhansali, Chairman, GJEPC, said India has moved beyond being the world’s manufacturing hub to becoming a global leader in gems and jewellery. Recent Free Trade Agreements, India’s chairmanship of the Kimberley Process this year, Indian representation at the highest levels of global diamond bodies — including the presidency of the World Federation of Diamond Bourses and the vice presidency of the World Diamond Council — and an expanding global retail presence all stand as evidence of India’s rising influence. Bhansali reiterated GJEPC’s vision of achieving US$100 billion in gem and jewellery exports by 2047, supported by world-class infrastructure, policy reforms and skill development.
Paul Rowley, Executive Vice President, Diamond Trading, De Beers Group, noted:

“India is far more than a market for De Beers. It is a trusted partner, a source of inspiration and increasingly a co-author of the next chapter for natural diamonds. The scale and energy of IIJS Bharat Premiere demonstrate the confidence of this industry. Despite global challenges, India continues to be the fastest-growing natural diamond market, and De Beers remains committed to supporting its long-term success through collaboration, skills development and consumer demand.”
K. P. Abdul Salam, Vice Chairman, Malabar Group, added:
“This is the moment for Indian jewellery. We have evolved from manufacturing for international brands to building Indian brands that are respected across the world. Platforms like IIJS Bharat Premiere connect our manufacturers with global buyers while showcasing India’s strengths in quality, innovation, sustainability and design. By strengthening trust, investing in branding and working together, we can take the industry to its next US$100 billion milestone.”

Highlighting technology’s growing role in jewellery retail, Lamon Rutten, Managing Director & CEO, India Gold Metaverse Pvt. Ltd., said:

“Technology is no longer just improving the way jewellers operate; it is transforming their entire business. By connecting retailers through digital ecosystems, jewellers can expand inventory, reach customers nationwide and unlock new financial opportunities without increasing working capital. The jeweller of the future will remain a trusted craftsman and advisor while becoming a national retailer, a financial gateway and a creator of wealth for the community.”
As IIJS Bharat Premiere 2026 continues, the BEC ceremonial opening set an optimistic tone for the days ahead, highlighting a shared commitment by government, industry and global partners to strengthen Brand India and position the country at the forefront of the global gems and jewellery industry.
Recognised as the world’s second-largest gem and jewellery B2B exhibition, IIJS Bharat Premiere 2026 spans over 135,000 sq. metres across two venues, featuring more than 2,100 exhibitors across 3,600 stalls. The show is expected to draw over 50,000 visitors, including 2,700+ international buyers from more than 80 countries.
The exhibition runs at the Jio World Convention Centre (JWCC), BKC, from 5 to 9 August, and at the Bombay Exhibition Centre (BEC), NESCO, Goregaon, from 6 to 10 August 2026. This year also marks 25 years of IIJS as India’s premier B2B gem and jewellery exhibition.
Running concurrently at the Bombay Exhibition Centre from 6 to 10 August, the India Gem & Jewellery Machinery Expo (IGJME) has established itself as the industry’s premier platform for advanced manufacturing technology.
The show also features The Select Club, a curated showcase of India’s finest couture jewellery; 20 Under 40, recognising emerging industry leaders; JewelStart Demo Day, spotlighting jewellery-tech startups; and Innov8 Talks, bringing together global experts to discuss the future of diamonds, AI, technology, precious metals and the evolving gem and jewellery business.
-
National News4 hours ago‘Made In India’ Jewellery Must Become The World’s Trusted Choice: Chirag Paswan At IIJS Bharat Premiere 2026
-
National News7 hours agoGJEPC Welcomes Introduction Of Taxation and Other Laws (Amendment) Bill 2026: A Landmark Step For India’s Rough Diamond Trading Ecosystem
-
National News4 days agoMaster Chains N Jewels Files DRHP With SEBI For ₹400 Crore IPO
-
National News7 hours agoA Cinematic Ode To Banaras: CaratLane’s ‘Kaashika’ Film Comes Alive With ‘Tum Tak’

