Diamond exports fall sharply on Customs' approach; changing preferences

In the first eight months of FY20, exports of cut and polished diamonds fell 19.4 per cent. This kept the overall gems and jewellery exports lower by 5.8 per cent at $25.5 billion. 

Polished diamonds and coloured gemstones were big underperformers in this basket. But gold and silver jewellery as well as synthetic gemstones have shown positive trends.

Industry sources said economic slowdown in major consuming countries, financing issues with banks turning cautious and hostile approach of the Customs department towards rough imports are major roadblocks for the industry.

The falling exports are owing to the changing preferences of young