As the Chinese economy slows down, India’s diamond exporters are looking at Southeast Asian markets such as Vietnam, Cambodia and Thailand, where Covid-19 restrictions are being eased, to increase shipments of polished diamonds.
Diamond exports bounced back to pre-Covid level in the first six months of this financial year and traders are expanding their presence in Southeast Asian nations to maintain the momentum.
“The diamonds that are exported to China from India are further exported to other nations from the country,” Sabyasachi Ray, executive director, Gem & Jewellery Export Promotion Council (GJEPC), told ET. “Nearly 60-70% of the diamonds imported by China are exported and the rest 30-40% are used for domestic consumption. The Chinese economy’s slowdown is going to impact the domestic consumption of diamonds by the Chinese.”
China’s economic growth is losing steam under pressure from a construction slowdown and power shortages, prompting warnings about a possible shock to its trading partners and global financial markets.