Russian diamond exports to India grow despite market challenges

India boosted its diamond imports from Russia by 22% in H1 2024 compared to the same period last year, reaching 41 lakh carats. This increase is particularly striking given the overall decline in India's diamond imports, with total imports across all categories falling by 0.3% to 6.58 crore carats in H1 2024.

Interestingly, whilst the volume of Russian diamond imports increased, their value decreased by 15.22%, from 5,152.13 crore INR to 4,368.17 crore INR ($613.72 million to $520.33 million). This suggests a significant decline in the price per carat of imported Russian diamonds.

The global diamond market is currently experiencing a period of stagnation, with declining prices for both rough and polished stones. Worldwide diamond production decreased by approximately 8% to 11.15 crore carats in 2023.

India plays a pivotal role in the global diamond industry, accounting for about 90% of the world's diamond cutting and polishing capacity. This position enables India to maintain a strong presence in the international diamond trade.

Although the current increase in Russian diamond imports to India is significant, experts caution against viewing this as a full recovery for Russian diamond exports. The potential for further growth will hinge on the global demand for jewellery and overall market conditions.

Source: Vedomosti