Dubai has the highest share in raw diamond imports!!!
Dubai has overtaken Antwerp in belgium as India's leading raw diamond supplier. dubai does not yet produce diamonds, yet its share in India's raw diamond imports is steadily increasing. dubai imports raw diamonds from Botswana, Angola, south africa and russia and re-exports them to India. Belgium's share, which was 37.9% in FY 2020, has now come down to 17.6% in FY 2024.
On the other hand, Dubai's share increased from 36.3% to 60.8% and reached 64.5% by April-June 2024. The main reason for this is India's high corporate tax policy, which forces foreign suppliers to first send diamonds to Dubai and then export them to India. This has affected the diamond business of mumbai and Surat.
Why India's diamond business has declined?
According to the GTRI report, the demand for polished diamonds has fallen sharply due to economic instability, inflation and political tensions in major markets like the US, china and Europe. This has reduced spending on luxury items like diamonds. At the same time, people are now moving towards lab-made diamonds. These are considered more affordable, ethical and sustainable. They look exactly like real diamonds, which has reduced the demand for real diamonds. This has also affected the import and export of rough diamonds in India.
Constant fluctuations in global diamond prices have made buyers uncertain. They are avoiding buying rough diamonds in the hope that prices may fall further and are hesitant to buy rough diamonds in the same hope. The Russia-Ukraine war has also disrupted the global diamond supply chain. russia is a major rough diamond producer, but the sanctions imposed on it have made trade more difficult.
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