Diamond industry shifts focus from US markets

After having sleepless nights during the global economic slowdown in 2008, the Surat diamond industry seems to have played safe as far as the US, the biggest diamond jewellery market, is concerned. Even as the entire world is keeping a close watch over US debt crisis, the diamond city of India has exuded confidence that the current situation in the US is unlikely to have any effect on their business. The reason: Diamontaires have reduced their dependence on the US market by partially shifting export focus to Asian nations, post-global turmoil a couple of years before.

The recession in 2008, largely triggered by financial crisis in the US, left the Surat diamond industry in deep trouble. Hundreds of diamond cutting and polishing units shut and thousands of labourers lost jobs. Once bitten, twice shy, the exporters started scouting for new markets to reduce their dependence on the US.

Industry players say exporters this time have been saved by a whisker from facing a 2008-like situation, as they had reduced their dependence on the US. “It is because we have shifted our focus to the Asian nations that we are almost insulated from the uncertainties in the US. As of now we do not see any major impact of the US credit rating downgrade on the diamond export operations,” said Champak Mehta, managing director, C Mahendra Exports.