Lab-Grown and Natural Diamond Exports Plummet Amid Global Demand Slump

Surat : India’s diamond industry is facing a severe downturn, with both lab-grown and natural diamond exports witnessing a sharp decline. For the first time in three years, lab-grown diamond exports have fallen by 18% in February 2025, marking a significant shift in the industry. Meanwhile, the natural diamond sector continues its downward spiral, recording a staggering 20% drop in exports compared to the previous year.

The decline in lab-grown diamond exports paints a worrying picture for an industry that was once seen as a beacon of growth. In February 2023, exports stood at Rs 1,117 crore, rising marginally to Rs 1,153 crore in February 2024. However, February 2025 has seen a dramatic drop to Rs 975 crore, a loss of Rs 196 crore compared to 2023 and Rs 178 crore compared to 2024. The once-thriving segment, which positioned itself as an affordable and sustainable alternative to natural diamonds, is now struggling to find stability in the face of weakening global demand.

The natural diamond industry, already grappling with economic challenges for the past two years, has suffered yet another setback. In February 2024, exports of natural diamonds were valued at Rs 14,162 crore, but in February 2025, that figure has plummeted to Rs 11,860 crore. This 20% drop highlights the ongoing struggles of the industry, which has been hit hard by reduced international demand, shifting consumer preferences, and global economic uncertainties.

The crisis is not limited to diamonds alone. The jewellery export sector has also suffered massive losses. Silver jewellery exports have dropped from Rs 848 crore in February 2024 to Rs 416 crore in February 2025, marking a staggering 53.22% decline. The export of imitation jewellery has fallen by 26%, while plain gold jewellery exports have suffered a 31% decline, dropping from Rs 3,943 crore to Rs 2,848 crore in just one year. Even studded jewellery, which remained relatively stable, has seen a slight decline of 4%.

Amid this industry-wide slump, one segment has emerged as a surprising winner. Platinum jewellery exports have recorded a remarkable 75.41% surge, rising from Rs 94 crore in February 2024 to Rs 173 crore in February 2025. The increased demand for platinum, often associated with luxury and exclusivity, has provided a small glimmer of hope in an otherwise bleak landscape.

Industry leaders have expressed deep concern over the situation, warning that prolonged declines could have devastating consequences for traders, manufacturers, and workers dependent on the diamond and jewellery trade. “The decline in lab-grown diamond exports is alarming, as this segment was considered a strong growth driver in recent years,” said a leading diamond exporter from Surat. “With both lab-grown and natural diamonds facing shrinking demand, the entire industry is under pressure.”

Another trader echoed similar concerns, highlighting the impact of reduced international orders. “We are seeing fewer orders from buyers in the U.S. and Europe, which has significantly affected our exports. If this trend continues, many businesses will struggle to sustain themselves in the long run,” he said.