India's rough diamond imports fall 32 percentChristian Fernsby ▼ | December 26, 2019
India has experienced a steep decline in net rough diamond imports in 2019, U.S. consultancy Bain and Consulting said.
Business in India Diamond mine
Topics: India diamond import
The decline has been attributed to the liquidity crunch due to financing cuts by banks.
"Indian banks adopted a more conservative approach following the poor performance and challenges of the Indian financial sector at large. Cutters and polishers reduced rough diamond purchases about 30 per cent to off-load inventory and improve their cash flow. In 2019, access to affordable financing became even more challenging for midstream players," the report said.
The report also said ongoing effects of demonetization contributed to stockpiling of incoming goods in India.
"In India, weakened local currency, liquidity issues resulting from bank financing cuts, and ongoing effects of demonetization contributed to stockpiling of incoming goods," reads the report.
According to the data from the Gem and Jewellery Exports Promotion Council, the overall gross import of rough diamonds between April to November 2019 has shown a decline 17.24 percent to 8.55 billion U.S. dollars from 10.34 billion U.S. dollars registered during April to November 2018.
Meanwhile, India continues to dominate the cutting and polishing industry with a 90 percent net import of rough diamonds globally as compared to 5 percent by China and another 5 percent by rest of the world. ■