Iran Conflict Disrupts India’s Diamond Trade
India’s gems and jewellery trade is facing disruptions as the escalating Iran conflict has halted exports and delayed rough diamond imports from the Middle East. Industry officials said flight cancellations and airspace closures across the region have severely affected logistics, preventing shipments of both finished jewellery and raw materials. Dubai, a key global trading hub for diamonds and bullion, has suspended several cargo and passenger flights, further complicating trade flows.
The Middle East accounts for nearly a quarter of India’s annual gems and jewellery exports, valued at around $30 billion. The United Arab Emirates alone supplies more than two-thirds of India’s rough diamond imports, making the disruption particularly significant for the industry. India is the world’s largest diamond cutting and polishing centre, processing roughly 90% of global diamonds.
Industry leaders warn that if the conflict persists, it could weaken demand and further impact exports. Overseas buyers are already cautious due to volatility in the rupee–U.S. dollar exchange rate and ongoing logistical challenges. With trade routes disrupted, both buyers and sellers are reportedly agreeing to delay shipments until conditions stabilise.
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