Russia doubles diamond exports to India – report

Exports of the rough gems in August surged year-on-year, totaling $31.3 million

Russia doubled its diamond exports to India in August, according to data from India's Ministry of Commerce and Industry, as cited by RIA Novosti.

Russia's diamond exports to India surged to $31.3 million in August, more than double the $13.4 million recorded in August 2024.
However, the total volume of Russian diamond supplies to India decreased by nearly 40%, reaching $342.1 million, in the first eight months of this year. The largest supplier of the precious gems to India in August was the UAE ($685 million), followed by Hong Kong ($173.1 million) and the US ($140.3 million), according to the data.

Russia is the world’s largest producer of rough diamonds and has historically been one of the key suppliers for India’s giant cutting and polishing industries.
However, Western sanctions against Russia’s diamond trade and its biggest mining company, Alrosa, have affected Indian industry.

European Union and G7 countries have restricted direct imports of non-industrial diamonds which have been mined, processed, or produced in Russia since January 2024.
The ban was later extended to diamonds that were cut and polished in third countries but originated in Russia.

In addition, the Indian diamond industry is facing challenges from a 50% tariff imposed by the US on cut and polished diamonds. This levy includes a 25% punitive tariff as a penalty for the country purchasing Russian oil, in addition to a 25% reciprocal tariff imposed on goods from India after New Delhi and Washington were unable to reach a trade agreement in August.

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The US remains India’s largest export market for gems and jewelry products. In August, the US partially relaxed the restrictions, introducing a temporary waiver allowing limited imports of certain Russian diamonds before September 1, 2026.

The restrictions on Russian gems, coupled with slow demand for diamond jewelry globally, have disrupted the Indian cutting and polishing industries, which employ thousands.
According to the Gem and Jewelry Exports Promotion Council (GJEPC), the gross exports of cut and polished diamonds during April-June 2025 stood at around $2.8 billion, reflecting a decline of almost 23% compared to the same period last year.