India’s diamond imports saw a 54 per cent decline in August compared to the same month last year, as the country remains a dominant player in the global diamond industry, responsible for producing 95 per cent of the world’s polished diamonds, a report showed on Tuesday.

As per preliminary data from the Gem and Jewellery Export Promotion Council (GJEPC), India imported 5.6 million carats of diamonds during this period, underscoring the ongoing global shifts within the diamond market.

India’s imports of lab-grown rough diamonds, which are increasingly significant in the global market, were valued at $119 million in August, down 12 per cent from the previous year.

In terms of value, however, the narrative differs, with the imports for August 2024 estimated at $672 million.

This figure marks a 49 per cent increase in value compared to August 2023, reflecting adjustments in pricing and demand for higher-value stones, as well as global supply chain shifts affecting both natural and synthetic diamonds, according to the data.

The decline in diamond imports is part of a broader industry trend. In July, India’s diamond imports were already down by 31 per cent in volume and 17 per cent in value year-on-year.

The August data by GJEPC suggests a continuation of this decline, exacerbated by market adjustments and a global oversupply of polished diamonds.

The country’s diamond exports also saw a reduction, with 1.34 million carats exported in August 2024, a 22 per cent year-on-year decrease.

“However, the August import and export data highlights the challenges faced by the sector, with fluctuations in both demand and supply continuing to impact the market,” said the report.

The diamond industry in the country is closely watching market developments, with a keen eye on potential recovery strategies.

The report mentioned that as producers and manufacturers strive to balance supply and demand, the industry’s future will likely be shaped by continued adjustments in global diamond production and distribution.