The domestic diamond industry is cautiously optimistic about a turnaround after a tough 2023 that saw the industry resorting to a voluntary ban on the import of rough diamonds to manage the mismatch of demand and supply.

According to data from the Gems and Jewellery Export Promotion Council (GJEPC), the import of rough diamonds into India has shown a 12.18 per cent decline in volume and 21.57 per cent decline in rupee terms between April and November 2023. The export of cut and polished diamonds saw a decline of 24.79 per cent in rupee terms and 25.73 per cent in volume between April and November 2023, reflecting softness in demand.

The voluntary ban, which was imposed since October 15, has come to an end on Friday (December 15). The suspension was a collective decision taken by the Indian diamond industry, represented by the GJEPC, Bharat Diamond Bourse, Mumbai Diamond Merchants Association, Surat Diamond Bourse and Surat Diamond Association.

The GJEPC and other associations have notified its trade members via a letter regarding the resumption of rough diamond imports.

With Surat processing over 90 per cent of the world’s diamonds, The Telegraph spoke to industry players there to gauge the impact of the ban and the expectations for 2024.

“With this ban, the stock levels have reduced. Imports have already started and orders are coming in. While we hope for normal demand next year, growth in 2024 will depend on market conditions. We will have to see whether the geopolitical tension further rises. We are in a luxury industry and, therefore, there is a factor of discretionary spend,” said Vijay Mangukia, regional chairman of Gujarat, GJEPC.

“There is a price correction (estimated at 10 per cent). At present, the US is showing a positive sign. In China, the expectation is that demand will pick up by February,” said Amit Pratihari, vice-president, De Beers Forevermark.

“There are global concerns with G7 countries imposing direct import restrictions on Russian-origin diamonds, which has a bearing on the industry in Surat,” said Dinesh Navadiya, former regional chairman of GJEPC Gujarat and a member of the working committee of Surat Diamond Association.

“The industry is hopeful that the prices will remain stable and sustainable in the coming months as the demand for natural diamonds gradually recovers in the key markets such as the US, China, Middle East, and Europe,” said Vipul Shah, chairman of GJEPC.