Lok Sabha Question No. 2607 (UNSTARRED), answered on 2025-08-05
Subject: Decline in Diamond Import and Export
Ministry: COMMERCE AND INDUSTRY
Asked by: Mr Pathan Yusuf

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 2607 ANSWERED ON 05/08/2025

## DECLINE IN DIAMOND IMPORT AND EXPORT

## 2607. MR PATHAN YUSUF:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government is aware of the sharp decline in diamond import and export in the country;
- (b) if so, the details thereof, year-wise;
- (c) the reasons behind this downfall and the steps taken by the Government is taking to support the diamond industry;
- (d) the number of jobs that have been lost in the diamond industry due to factory closures and defaults; and
- (e) the  measures  being  taken  to  support  displaced  workers  and  ensure  their  reemployment?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) (SHRI JITIN PRASADA)

(a), (b) & (c) Export and Import of diamonds have declined in 2024-25 as compared to 202324.

| Values in USD   | Rough Diamonds     | Rough Diamonds   | Cut and Polished Diamonds   | Cut and Polished Diamonds   | Total     | Total     |
|-----------------|--------------------|------------------|-----------------------------|-----------------------------|-----------|-----------|
| million         | 2023-24            | 2024-25          | 2023-24                     | 2024-25                     | 2023-24   | 2024-25   |
| Export          | 1,003.06           | 566.66           | 17,367.60                   | 14,527.61                   | 18,370.66 | 15,094.27 |
| Import          | 15,511.7811,376.18 |                  | 7,483.74                    | 5,814.43                    | 22,995.52 | 17,190.61 |

Source: DGCI&S

*Diamond includes HS 7102 (Natural diamonds), HS 7104 21 and HS 7104 91(Laboratorygrown diamonds)

The consumer demand for luxury items has generally declined across the world due to effects of geopolitical conflicts in Ukraine and West Asia. Diamond being a luxury item has also seen a decline in consumer demand in India's export destinations. G7 sanctions on Russian diamonds and the challenge of the identification and traceability of non-Russian diamonds by the importing G7 and EU countries have also impacted diamond trade. The global exports of cut and polished diamonds have declined significantly from USD 75.68 billion in 2023 to USD 54.77 billion in 2024.

In response, Department of Commerce (DoC) is implementing multifaceted strategies to comprehensively address declining exports and imports. These include:

1.  DoC  has  been  engaging  with  the  G7  to  protect  India's  diamond  industry  following G7 sanctions on Russian diamonds. As a result, following has been achieved:

(i) Full-traceability scheme was shifted from 01 March 2025 to 01 January 2026.

(ii)  'Grandfathering  of  diamonds'  was  permitted for  diamonds  that  entered  G7/EU before sanctions.

(iii)  Jewellery  Studded  with  Russian  diamonds  processed  in  3rd  Countries  was exempted from the purview of sanctions.

2.  DoC  in  tandem  with  industry  stakeholders  is  undertaking  initiatives  to  explore  new markets, while sustaining export of diamond in existing major markets.

3.  DoC  has  awarded  an  R  &  D  project  to  IIT-Madras  in  2023-24  with  an  outlay  of  Rs. 242.96 Cr over 5 years for indigenous manufacturing of  both  Chemical  Vapour Deposition (CVD) and High Pressure and High Temperature (HPHT) systems along with the recipes for expanding the Lab Grown Diamond (LGD) business.

4. The Customs (Import of Goods at Concessional Rate of Duty or For Specific End Use) Rules, 2022 (IGCR) condition for customs duty exemption on import of seeds used in rough Lab-Grown Diamond manufacturing has been removed. Further, duty free import of LGD seeds extended upto 31.03.2026.

5.  Safe  Harbour  Rates  (SHR)  for  sale  of  rough  diamonds  in  Special  Notified  Zones (SNZs) by foreign mining companies (FMC) was notified in November 2024 to enhance direct sales of rough diamond by foreign mining companies to Indian entities.

6. Diamond Imprest Authorization scheme has been implemented from April 1, 2025 for duty free  import  of  natural  cut  and  polished  diamonds,  of  less  than  one-fourth  carat,  thereby promoting value addition and exports.

(d) & (e) Department of Commerce does not maintain such data.

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