The Indian Diamond Industry is the largest in the world. About 90% of the world's diamonds pass through Gujarat for polishing, making the Indian state a pivotal member of the diamond supply chain. The sector contributes about 7 per cent to the Gross Domestic Product (GDP) of the country.
The Nirav Modi Scandal
The over US$ 2 billion fraud involving diamantaires Nirav Modi and Mehul Choksi affected the reputation of the Indian diamond industry. The industry took a beating in 2018 and is likely to continue for quite some time now.
Indias exports of cut and polished diamonds, gold jewelry and gem stones are forecasted to grow around 10 per cent year-on-year in FY19 according to Gems and Jewelry Export Promotion Council (GJEPC). India's diamond exports ranked second in the world valued at US$ 18.1 billion which accounted for 15.3 per cent of the global diamond exports in FY18. Exports of cut and polished diamonds grew by 4.17 per cent to $23.74 billion in 2018. Last year, the countrys import of rough diamonds rose 24.5 percent to 149.8 million carats and export of cut and polished diamonds witnessed a surge of 28.3 percent in carat value. Countries where India exports its polished diamonds are USA, Belgium, Israel and Hong Kong.