New Delhi, Sept. 22 -- The cut and polished diamonds (CPDs) sector, once a bright spot in India's export basket, is now under pressure with CareEdge Ratings projecting a 17-20% decline in exports to around $11 billion in FY26. The industry, which saw a 17.5% drop in exports to $13.3 billion in FY25, faces multiple headwinds including weak global demand, high US tariffs, and increasing competition from lab-grown diamonds (LGDs).

According to CareEdge, India accounts for more than 90% of the world's polished diamonds by volume, leaving buyers with few alternatives. The recent US tariffs of up to 50% risk increasing prices for the end consumer and dampening demand in a key market, which alone accounts for more than 40% of global polished di...