SourcingMar 15, 2023
Amid Uncertainties, India’s Diamond Industry Continues to Adjust SourcingMar 15, 2023
Q&A: GJEPC Chairman Vipul Shah
Shah talks with National Jeweler about diamond demand, lab-grown, and why it’s difficult to make predictions about the U.S. market.
Vipul Shah is the chairman of India’s Gem & Jewellery Export Promotion Council.
Mumbai—As Q1 2023 enters its final weeks, there is a growing optimism in India’s diamond industry.
The positive indications emerging from the Far East market at the just-concluded Hong Kong show, coupled with some early signs that demand in the U.S. may stage a recovery, are driving this sentiment.
The apex body that helmed the Indian gem and jewelry industry’s rise to global prominence, the Gem & Jewellery Export Promotion Council (GJEPC), is also on an upswing.
Its membership has just crossed 9,000, a full 38 percent above 2021 membership.
Last month the organization unveiled plans to expand its flagship show, IIJS Premiere, making it the second largest gem and jewelry trade event globally, with 1,850 exhibitors across 3,250 booths split between two world-class venues.
National Jeweler caught up with GJEPC Chairman Vipul Shah to talk about overall demand, lab-grown diamonds, and the impact the war in Ukraine is having on India’s diamond industry.
Q: Exports of polished diamonds from India have slowed over the past few months. What are the factors behind this?
A: Global uncertainty hit consumer sentiment in the U.S. and Europe, and China remained closed for a long time. So, during April 2022 to January 2023, Indian cut and polished diamond exports witnessed a 10 percent decline.
Diamond manufacturing was also impacted by rough supply being erratic, irregular and undependable. Prices of Russian rough diamonds are steep, and dealers are facing hurdles as they are not able to send payments smoothly due to the U.S. sanctions.
The war has severely impacted everyone globally with high inflation, high interest rates, high cost of holding inventory, etc., in the last eight months.
Q: Has this slowdown been uniform across all categories of polished?
A: No, it differs across the three basic categories of polished.
The demand for 20 pointers and below is strong and stable due to the shortage of rough, as supply has declined over the last one and a half years. Prices are stable, though slightly on the higher side. However, supply of rough from Alrosa is unstable, with a month of supply followed by one to two months of no supply.
[Demand in] the 20-50 points category has started to pick up very recently, mainly driven by Chinese demand following the lifting of lockdowns. Gold jewelry sales were high during the Chinese New Year, and diamond jewelry is the next major category both in China and other southeast Asian markets.
Fancy shapes like pear, oval, marquise, etc., have performed well across the board.
In the 1-carat-plus round category, however, there has been a significant decline in demand as a large portion of these goods are exported to the U.S.A., which has underperformed in the last six to eight months due to the American economic slowdown, inflation, recession, etc.
Moreover, lab-grown diamonds have taken over about a third of the large-stone engagement ring market share in the U.S. market.
Q: What has been the impact of the rise of lab-grown diamonds on India’s diamond business?
A: The impact of lab-grown diamonds on small diamonds is not as significant as it has been for larger diamonds. In smaller sizes, the price differential between natural and lab-grown diamonds is not significant. Additionally, the labor required to polish either type of smalls is similar, further reducing the price differential.
In larger sizes of 1 carat and above, the price differential between the two is significant, around 30-40x. For instance, if a lab-grown diamond costs $2, its natural equivalent stone will be priced at $60. This impacts the market greatly especially at a time when the economy is facing challenges such as inflation, recession, and other related issues.
Q: What are GJEPC’s plans for further development in this context?
A: India’s gem and jewelry industry contributes $40 billion in export income, which is about 10 percent of the country’s merchandise exports. GJEPC aims to increase this to $75 billion over next five years.
The diamond sector accounts for more than 60 percent of exports and will continue to be a key segment.
The country is also emerging as the fastest-growing jewelry manufacturing center both for plain gold and studded jewelry. The recent free trade agreements—India-UAE CEPA and India-Australia ECTA—have provided impetus to the sector and boosted jewelry exports to these markets. Bilateral trade agreements with other nations are expected to provide a further fillip.
Our industry is also focusing on developing the manufacturing infrastructure in the country.
India’s largest jewelry park is coming up in Mumbai, and hi-tech Common Facility Centres (CFC) and a Mega CFC in Seepz will enhance quality of the product. A gem bourse is also coming up in Jaipur.
Additionally, GJEPC holds three popular trade shows, IIJS Premiere, IIJS Signature and IIJS Tritiya; organizes India Pavilions global exhibitions; and conducts product-specific and market-specific buyer-seller meets and India Global Connect e-meetings to introduce Indian exporters to potential buyers worldwide.
Moreover, we are focusing on responding to increasing consumer interest in traceable, responsibly sourced diamonds, supply chain transparency, sustainability, and ethical practices.
Q: So, what are your expectations for the rest of 2023?
A: The opening up of markets in China and Southeast Asia is a good thing and we anticipate no further drop in exports. In fact, we expect some positive signs from the Far East over the next six months.
In Southeast Asian countries such as Vietnam, Cambodia, Thailand, Indonesia and others, there is a lot of new money. The economies have performed well and are potential new markets. Vietnam or Cambodia can even be likened to the China of 20 years ago!
There are also expectations the U.S. market will recover from the economic slowdown of the last few months. Consumer confidence is also expected to improve. This could lead to a rebound in demand for luxury goods, including diamonds and jewelry.
However, one cannot underestimate the impact of external factors such as inflation, interest rates, and global economic conditions. Currently, therefore, it is difficult to make an accurate prediction for the U.S.
Related stories will be right here …
More on Sourcing
The Latest
TrendsJun 20, 2025
Dua Lipa Stays On-Trend With Chunky Engagement RingThe singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.
TrendsJun 20, 2025
Piece of the Week: Yvonne Léon’s ‘Python Gold’ BraceletThe bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.
CrimeJun 18, 2025
7 Men Indicted in $100M Brinks Jewelry HeistThe heist happened in Lebec, California, in 2022 when a Brinks truck was transporting goods from one show in California to another.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’sThe 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week.
Weekly QuizJun 20, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsJun 18, 2025
Q&A: Caryl Capeci Dives Into Cruise Jewelry ShoppingThe Starboard Cruises SVP discusses who is shopping for jewelry on ships, how much they’re spending, and why brands should get on board.
AuctionsJun 18, 2025
16th-Century ‘Gresham Grasshopper’ Ring Sells for $56KThe historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.
CollectionsJun 18, 2025
Kirk Kara Celebrates 135 Years With New JewelsTo mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.
TechnologyJun 18, 2025
Alex Brown Named President of Smithee GroupFounder and longtime CEO Ben Smithee will stay with the agency, transitioning into the role of founding partner and strategic advisor.
EditorsJun 17, 2025
The Best New Jewelry from Couture 2025, Part 1Associate Editor Natalie Francisco shares 20 of her favorite pieces from the jewelry collections that debuted at Couture.
ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.
AuctionsJun 17, 2025
Colored Gemstones, Signed Jewels Shine in Sotheby’s High Jewelry SaleThe top lot was a colorless Graff diamond, followed by a Burmese ruby necklace by Marcus & Co.
MajorsJun 17, 2025
Amanda Gizzi Gets a Promotion at JAGizzi, who has been in the industry since 2001, is now Jewelers of America’s senior vice president of corporate affairs.
MajorsJun 17, 2025
Kering Names Automotive Exec as Its New CEOLuca de Meo, a 30-year veteran of the auto industry, will succeed longtime CEO François-Henri Pinault.
EditorsJun 16, 2025
Q&A: Bogolo Joy Kenewendo on Mining, Tariffs, and the Energy of Las VegasFollowing visits to Vegas and New York, Botswana’s minerals minister sat down with Michelle Graff to discuss the state of the diamond market.
IndependentsJun 16, 2025
Greenwich St. Jewelers Launches Commitment Campaign Celebrating LGBTQ+ CouplesThe “Your Love Has the Perfect Ring” campaign showcases the strength of love and need for inclusivity and representation, the jeweler said.
MajorsJun 16, 2025
Ivette Nersesyan-Stephanopoulos Joins Tiffany & Co.The former De Beers executive is the jewelry house’s new director of high jewelry for the Americas.
MajorsJun 16, 2025
Catbird Names WNBA Star Nyara Sabally as Its New Brand AmbassadorThe New York Liberty forward is the first athlete to represent the Brooklyn-based jewelry brand.
CollectionsJun 13, 2025
Piece of the Week: Robinson Pelham’s Pear EarringsTake a bite out of the 14-karat yellow gold “Fruits of Love Pear” earrings featuring peridots, diamond stems, and tsavorite leaves.
Events & AwardsJun 13, 2025
AGA to Host ‘Diamonds From Mine to Market’ Education ConferenceThe one-day virtual event will feature speakers from De Beers, GIA, and Gemworld International.
EditorsJun 12, 2025
15 Questions With Jewelry Photographer Ella SophieThe California-based creative talks jewelry photography in the modern era and tackles FAQs about working with a pro for the first time.
AuctionsJun 12, 2025
Vintage Patek Philippe From the ‘50s Sells for $4M at Sotheby’s Al Capone’s pocket watch also found a buyer, though it went for less than half of what it did at auction four years ago.
Events & AwardsJun 12, 2025
Gabriel Love Foundation Introduces Scholarship Honoring Elias GabrielThe foundation has also expanded its “Stronger Together” initiative with Jewelers for Children.
AuctionsJun 12, 2025
Former De Beers Exec Celine Assimon Joins BonhamsAssimon is the auction house’s new chief commercial officer.
EditorsJun 11, 2025
Q&A: Al Cook on Differentiating Natural Diamonds, Traceability, and TariffsThe De Beers Group CEO discusses the company’s new “beacon” program, the likelihood diamonds will be exempt from tariffs, and “Origin.”
MajorsJun 11, 2025
Pandora Bets on Las Vegas for First North American FlagshipThe Danish jewelry giant hosted its grand opening last weekend, complete with a Pandora pink roulette wheel.
