Iran-Israel Conflict Threatens India's Diamond Trade, Industry Faces Crisis

• The Iran-Israel conflict poses a new challenge to the diamond industry, with 25-30% of India's diamond trade linked to Israel.
• Prolonged conflict could disrupt payment systems, orders, and the presence of international buyers, directly impacting India's polished diamond and high-value stone segments.
• Dubai, a crucial transit hub and 'free port' for global diamond trade, faces potential import-export disruptions, which would halt rough diamond supply to India and polished goods export.
• The industry, still recovering from the Russia-Ukraine conflict's supply chain collapse and job uncertainty for artisans in Surat, Navsari, Jaipur, Hyderabad, Mumbai, and Delhi, now faces renewed pressure.
• Existing pressures like high gold and silver prices, US tariffs, and a global recessionary environment, combined with Middle East tensions, threaten the industry's recovery and small traders.