Sourcing

Q&A: GJEPC Chairman Vipul Shah

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.

20230315_GJEPC Chairman Vipul Shah.jpg
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 … 

The Latest

Astrid & Miyu 2025 12-Day, 24-Day, Solid Gold Advent Calendars
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent Calendars

The trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.

Front of Marla Aaron porcelain Nymphenburg Lock
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’

Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.

Alisa Bunger Frederick Goldman
MajorsOct 10, 2025
Frederick Goldman Names New VP of Sales

Jewelry industry veteran Alisa Bunger has taken on the role.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (2) (1).jpg
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Fabergé Imperial Winter Egg
AuctionsOct 09, 2025
This Fabergé Egg Could Crack $27M At Auction

“The Winter Egg” set the world auction record for a Fabergé piece twice at previous Christie’s sales.

Weekly QuizOct 09, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Kessler watch battery recycling program
MajorsOct 09, 2025
Sy Kessler Buying Watch Batteries as Silver Hits Record High

The company will pay 1.5x silver’s current spot price for each pound of silver oxide batteries submitted.

Katkim Men’s Collection Shadow Pendant Necklace and Anerise Signet Band
CollectionsOct 09, 2025
Katkim Launches First Men’s Collection

The line includes a “Shadow” series crafted exclusively for the new men’s offering and reimagined styles from the brand’s core collections.

ja_fall_2024_by_headshot_stories_6824.jpg
Brought to you by
JA New York Fall Is Right Around the Corner

The upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.

“Storied Diamond Desert Sands of Eternity” engagement ring and wedding band
SourcingOct 08, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey

The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.

Emily P. Wheeler Ombré Collection Campaign
CollectionsOct 08, 2025
Emily P. Wheeler Shifts Into Neutral for Latest ‘Ombré’ Collection

The champagne colorway in her newest “Ombré” collection combines white and trendy brown diamonds, a departure from her usual vibrant hues.

MRK x MFA Tsuba Charm Necklace Collection Campaign
CollectionsOct 08, 2025
Tsuba Designs Inspire Monica Rich Kosann’s New Charms

Kosann partnered with the Museum of Fine Arts, Boston, to create a set of necklaces inspired by the artwork on samurai sword handguards.

Stock image of a gavel and law books
CrimeOct 07, 2025
Men Who Posed as Utility Workers Found Guilty in Jeweler’s Murder

Carlos Jose Hernandez and Joshua Zuazo face life in prison for the October 2024 murder of 72-year-old Detroit-area jeweler Hussein Murray.

Zoë Kravitz Wearing Jessica McCormack Tempest Sapphire Pendant and Tempest Diamond Necklace
CollectionsOct 07, 2025
Jessica McCormack Looks to Sea Spirits for ‘Tempest’ Collection

The brand’s first high jewelry collection, “Tempest” plays with movement while calling to mind the folklore of the sea.

Lightning Ridge Rural Fire Brigade
SourcingOct 07, 2025
Columbia Gem House Announces ‘Opals for Outback Heroes’ Fundraiser

Proceeds from its jewelry raffle will go to a volunteer-run fire and rescue group in the Lightning Ridge area of New South Wales, Australia.

Stuller 2025 S.E.R.V.E. Star Awards winners
MajorsOct 07, 2025
Stuller Names Its S.E.R.V.E Stars for 2025

Stuller said the recipients embody the company’s core values, which include community participation and personal and professional growth.

All four models of Citizen’s new Rainell watch
WatchesOct 06, 2025
This Fall, Citizen’s Forecast Calls for Rain

Citizen’s new “Rainell” women’s watch has a raindrop-shaped case and is available with a silver-, gold-, purple-, or green-colored dial.

Mercedes Gleitze Rolex Oyster 1926
AuctionsOct 06, 2025
The ‘Rolex That Made Rolex’ Heads to Auction at Sotheby’s

The “Mercedes Gleitze Rolex Oyster,” named for the British endurance swimmer who made it famous, will go up for sale next month.

Amit Pratihari GIA India
GradingOct 06, 2025
GIA India Names Former De Beers Exec as New Managing Director

Amit Pratihari was previously the managing director of De Beers India and Forevermark India.

DCWC 2025 Board of Directors
SourcingOct 06, 2025
SoCal 24 Karat Club Integrates Into Diamond Club West Coast

Members of the Jewelers 24 Karat Club of Southern California will gain access to expanded services, resources, and connections, DCWC said.

Selena Gomez and Benny Blanco Wedding, Jacob & Co. Watch
TrendsOct 03, 2025
Selena Gomez, Benny Blanco Tie the Knot Wearing Diamonds, White Metals

Gomez’s jewelry included Tiffany & Co. drop-style earrings while Blanco stacked diamonds from Jacob & Co. on his wrist.

HRD Antwerp CEO Paul De Wachter
GradingOct 03, 2025
Grading Lab HRD Antwerp Names New CEO

Diamond industry banking veteran Paul De Wachter will take on the role in January 2026.

Taylor Swift Kallati sapphire ring
TrendsOct 03, 2025
Piece of the Week: Kallati’s Pink Sapphire Ring

Taylor Swift flaunts an Elizabeth Taylor-esque gemstone in promo for her new album, “The Life of a Showgirl.”

Boucheron Quatre Sand Collection
CollectionsOct 02, 2025
Boucheron Debuts Cuffs Crafted With 3D-Printed Sand

Its “Quantre Sand” capsule was made using a 3D sand printing technique borrowed from the automotive and aeronautics industries.

Stock image of crime scene tape
CrimeOct 02, 2025
$1M in Jewelry Stolen in Northern California Smash and Grab

Four individuals have been charged in the “takeover-style” robbery of Heller Jewelers last month, and additional charges are expected.

Neil Lane and Boucheron bow tie brooch
MajorsOct 02, 2025
Neil Lane Jewelry Exhibition Coming to Toledo Museum of Art

“Radiance and Reverie” will showcase more than 150 jewels from Lane’s personal collection by Tiffany & Co., Cartier, and more.

Just Jules opal necklace
TrendsOct 02, 2025
Amanda’s Style File: October’s Colorful Show

The month’s birthstones, tourmaline and opal, complement the palette of autumn.

Peter Smith National Jeweler columnist
ColumnistsOct 01, 2025
Peter Smith: Why Vendor Success Starts With Self-Reflection

Smith shares the importance of looking at your company with openness and honesty to identify opportunities you may be missing.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy