Firstpost: The reasons behind the decline in diamond prices in India

The diamond industry has taken a rough hit recently, with prices plummeting and workers facing hardships. According to reports, both synthetic and natural diamonds have seen a significant decline in prices, with natural diamonds particularly hard hit.

Ashok Gajera, CMD of Laxmi Diamonds, revealed that diamond rates have been falling for the past 22 months, affecting businesses of all sizes in the industry. The competition from flawless lab-grown stones has intensified, with lab-grown diamonds now being sold at a fraction of their previous prices.

The overall gems and jewellery exports from India have also suffered, with a decline of 13.44 percent in June alone. The export of cut and polished diamonds saw a significant dip as well, painting a grim picture for the industry.

Experts attribute this downfall to the global slowdown in diamond demand, with key markets like China showing weak interest. The impact of the situation is widespread, affecting millions of workers in the industry, from craftsmen to blue-collar workers.

The diamond industry is a significant employer, supporting around 5 million workers across the country. The sector’s labor-intensive nature means that any fluctuations in prices or demand can have a cascading effect on the livelihoods of many.

Going forward, industry experts suggest that the situation may worsen for lab-grown diamonds, with prices expected to drop even further. This challenging landscape calls for a closer look at the policies and strategies needed to support the diamond industry and its workforce in these trying times.