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
MajorsNov 21, 2025
Natural Diamond Council Names New CEOAmber Pepper’s main focus will be on digital innovation and engaging younger consumers.
CollectionsNov 21, 2025
Piece of the Week: Melissa Kaye’s ‘Rocky Infinity’ NecklaceThe lariat necklace features a 4.88-carat oval-cut Zambian emerald in 18-karat yellow gold.
AuctionsNov 20, 2025
Vanderbilt Jewels Shine at Phillips Sale, Pink Diamond WithdrawnA 43-carat sapphire brooch from the Vanderbilt collection was the top lot of the Geneva sale.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
CollectionsNov 20, 2025
Rebecca Rau Jewels Debuts With ‘Then & Now’ CollectionRau is a fourth-generation art and antique dealer from M.S. Rau gallery whose first jewelry collection merges artifacts with modern design.
Weekly QuizNov 20, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Policies & IssuesNov 20, 2025
RJC Names New Executive DirectorFormer De Beers sustainability leader Purvi Shah will take over the role in February 2026.
WatchesNov 20, 2025
LVMH Takes Minority Stake in Citizen Group-Owned Movement Maker La Joux-Perret is based in La Chaux-de-Fonds, Switzerland, and makes solar quartz as well as mechanical watch movements.
Brought to you by
Roseco Releases New Full-Line CatalogRoseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.
GradingNov 20, 2025
Julia Griffith Joins SSEF as Head of EducationShe previously taught at Gem-A and is the founder of The Gem Academy.
CollectionsNov 19, 2025
Larkspur & Hawk Celebrates 25 Years With Helena Bonham Carter CampaignThe British actress and her daughter modeled pieces from the brand’s new “Palette” capsule for its “Once Upon a Time” holiday campaign.
TechnologyNov 19, 2025
Google Has a New Form for Reporting ‘Review Bombing’ Attacks Plus, the tech giant shares the steps retailers should take if they believe they’re a victim of a review extortion scam.
IndependentsNov 19, 2025
Houston Jeweler Keith Shaftel Retires, Next Generation Steps In Danny and Gaby Shaftel are now Shaftel Diamonds’ CEO and chief operating officer, respectively.
TrendsNov 19, 2025
Midas Chain Releases 2025 Holiday Style GuideThe jewelry manufacturer’s seasonal offering features its new “Melodie” bangles, as well as mini stud earrings and layering pieces.
Events & AwardsNov 18, 2025
NYC Jewelry Week 2025: 12 Must-See EventsWith more than 140 activations taking place in New York City now through Nov. 23, these 12 events are can’t-miss moments.
MajorsNov 18, 2025
Lugano Diamonds Files for Bankruptcy, Looking for BuyerThe Chapter 11 filing follows the resignation of CEO Moti Ferder, who stepped down after an investigation into the company’s finances.
Events & AwardsNov 18, 2025
A Giant, Bejeweled Moldy Berry Is on Display in LAThe artwork is part of an exhibition featuring works by Kathleen Ryan, an artist known for her gemstone-studded rotting fruit sculptures.
CrimeNov 17, 2025
Police Searching for 2 Suspects in Murder of Father, Son Jewelers Faustino Alamo Dominguez and his son, 25-year-old Luis Angel Alamo, were gunned down following an armed robbery at their jewelry store.
GradingNov 17, 2025
IGI Announces New President of North AmericaTiffany & Co. veteran Jeffrey Bennett has stepped into the role.
MajorsNov 17, 2025
Look Inside Robbins Brothers Fine Jewelers’ New Pasadena FlagshipThe showroom is located in a historic 1920s building in the Playhouse District.
Policies & IssuesNov 14, 2025
U.S., Switzerland Reach Deal That Drops Tariff to 15%The Swiss government announced the deal, which cuts the tax on Swiss imports by more than half, on social media Friday morning.
AuctionsNov 14, 2025
Napoleon’s Diamond Brooch Blows Away Auction Estimates A buyer paid $4.4 million for the piece, which Napoleon wore on his hat for special occasions and left behind when he fled Waterloo.
FinancialsNov 14, 2025
Richemont’s Q2 Jewelry Sales Up 12%Plus, how tariffs and the rising price of gold are affecting its watch and jewelry brands.
CollectionsNov 14, 2025
Piece of the Week: Silvia Furmanovich’s ‘Butterflies in Flight’ Jewelry BoxFurmanovich designed the box to hold Mellerio’s “Color Queen,” a high jewelry collection consisting of 10 rings.
Events & AwardsNov 14, 2025
JCK Names New Event DirectorJennifer Hopf, who has been with JCK since 2022, will lead the execution of the long-running jewelry trade show.
IndependentsNov 13, 2025
127-Year-Old New Orleans Jeweler to CloseAdler’s Jewelry is set to close its two stores as 82-year-old owner Coleman E. Adler II retires.
IndependentsNov 13, 2025
Green Lake Jewelry Works to Move to New Seattle StudioFounder Jim Tuttle shared how a dedication to craftsmanship and meaningful custom jewelry fueled the retailer’s double-digit growth.
MajorsNov 13, 2025
Vahan Jewelry Founder Leon ‘Sacha’ Der Calousdian Dies at 85The third-generation jeweler is remembered as a passionate creative with a love of art, traveling and sailboat racing.
