Belgiums diamond export statistics reflect the growth in emerging markets while demand from the US fades. It doesn’t come as a surprise to many in the industry that India and the United Arab Emirates are the two biggest polished diamond export destinations for Belgium – actually bringing about a growth in exports. Yippee! So we needn’t worry about the downturn in the US! Or should we?

I would advise caution. Both these markets put together can’t even begin to take up the slack left by the US. Also, given that much of India’s prosperity comes from the export of goods and services to the US, a slowdown in that market is going to have an impact on the Indian economy no matter what the economic pundits say about ‘decoupling’.

Right now, the Indian diamond industry doesn’t have much happening in the way of production. Movement in the market seems to be mainly for better goods in all sizes. This means that even the domestic market is opting for the larger stones, better colours and clarities. The lower colours and purities are languishing in safes. The lower colours and purities also make up the bulk of the diamonds processed in India in terms of the numbers of pieces. They are what keep employment high. If they continue to remain unsold…