New Delhi: The Gem & Jewellery Export Promotion Council (GJEPC) expressed deep concerns regarding the escalating conflict between Israel and Hamas, underscoring that India’s gem and jewelry exports to Israel exceeded $1.2 billion in the previous fiscal year. India, renowned for its role in cutting and polishing 90% of the world’s rough diamonds and providing employment to around two million individuals, is grappling with an unprecedented crisis due to a sharp drop in demand. This has led trade organizations to advise their members to halt rough stone imports for two months temporarily.
Israel experienced an unexpected and unprecedented attack by Hamas, which governs the Gaza Strip, in its southern regions on a Saturday morning.
In the current fiscal year, exports have witnessed a significant decline of 30.27% year-on-year, marking the most substantial drop in at least five years. Demand from crucial markets like China and the United States has plummeted. Vipul Shah, Chairman of GJEPC, highlighted India’s substantial gem and jewelry exports to Israel, amounting to $1,279.76 million during the 2022-23 fiscal year. He also noted that as a vital trading hub, Israel exports rough diamonds worth $1,782.80 million.
Shah emphasized Israel’s pivotal role as a re-export market and described the ongoing conflict as “grave.” He added that it is too early to provide a definitive assessment of the impact, stating, “We have not witnessed any disruption in the regular dealings so far.” India sources its rough diamonds from renowned companies such as De Beers, Rio Tinto, and Russia’s Alrosa. These rough diamonds undergo processing at the Surat Diamond Bourse after arriving through the Bharat Diamond Bourse (BDB). Subsequently, polished diamonds are channeled back to the BDB for export, primarily to destinations such as the United States, Hong Kong, and Belgium.