The escalating conflict in the Middle East has disrupted India’s gems andjewellery trade, affecting both exports and imports due to widespread flightcancellations, airspace restrictions, and logistical challenges.
Dubai, a major global hub for polished and roughdiamonds as well as bullion trade, has suspended numerous cargo and passengerflights. This has slowed the movement of goods between India and keyinternational markets.
Industry officials said exports and importslinked to the Middle East have been significantly delayed, with limitedlogistics solutions currently available.
“Exports and imports from the Middle East havecome to a standstill, and there are no logistics in place to move goods,” saidVipul Shah, managing director of Asian Star.
The Middle East accounts for nearly one-quarter of India’s annual gems and jewelleryexports, valued at approximately $30 billion. The United Arab Emirates supplies more thantwo-thirds of India’s rough diamondimports, making it a critical trade partner.
India is the world’s largest centre fordiamond cutting and polishing, handling around nine out of every ten diamonds processed globally. Anydisruption in rough diamond supply directly impacts manufacturing activityacross the country.
Industry leaders expect exports to decline inMarch, as Dubai serves not only as a major consumer market but also as anessential intermediary connecting diamond-producing nations with global buyers.
“If the conflict drags on, it could hurtdemand,” said Shaunak Parikh, vice chairman of the Gem and Jewellery ExportPromotion Council.
India has increasingly relied on demand fromthe Middle East following reduced purchases from other major markets. However,volatility in the rupee–U.S. dollar exchange rate and ongoing logistical constraintsare adding pressure on exporters.
The Indian rupee recently fell to a record lowof 92.3025 per U.S. dollar,increasing import costs and uncertainty for international buyers.
According to industry participants, bothbuyers and sellers are aware of the current disruptions and are agreeing todelay shipments until conditions stabilize.