The ongoing conflict in West Asia is significantly impacting India’s jewellery and gem exports from the United Arab Emirates. India is in danger due to $98 billion in imports, including crude oil, LNG, and diamonds. According to ANI reports, a prominent diamond trader and president of the diamond association in Surat, Dinesh Navadiya, has claimed that if the conflict drags on, it will adversely affect trade flows, especially high-value diamond exports.
Dubai, known as the global hub for polished and rough diamonds, had to cancel numerous cargo and passenger flights due to such consequences. The Middle East is handling nearly a quarter of India’s annual gems and jewellery exports, with an estimated $30 billion in exports, adding to prolonged instability that could affect the availability of raw materials, supply chains, and export commitments. India is considered the world’s largest hub for polishing and cutting, but jewellery and gem exports will fall sharply in March. It led to a 16.8% fall in overall jewellery and gem shipments to $13.3 billion annually.
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After imposing heavy tariffs on Indian goods last year, India has been the second-largest buyer of raw diamonds from the Middle East, after the United Arab Emirates, because Dubai is the key intermediary between diamond-producing countries and major consumer markets. Collin Shah, the managing director of Kama Jewellery, has added that overseas buyers are now aware of placing orders in the rupee & US dollar exchange as Indian rupees have fallen to the amount of 93 per US dollar on Wednesday. This has made both buyers and sellers in the countries cautious, realising that war has completely disrupted the supply, and that delaying shipments would be preferable.
