Vipul Shah

“The LGD sector serves a distinct consumer base, and is well-positioned to capitalize on its strong foundation like innovation, improving efficiencies, and exploring new market opportunities, it is set for a bright and promising future,” assures a supportive Vipul Shah.

 Vipul P Shah, CEO & Managing Director of Asian Star Co. Ltd., has built an empire with his astuteness, focus and determination, and is a force to reckon with. A visionary with rich experience in the diamond industry, he has absolute knowledge of current business trends prevailing worldwide as well as deep insight of future needs of the diamond market. His expertise in financial matters remains undisputed.

His broad strategic vision, business acumen and professional conduct have contributed significantly in transforming Asian Star from a manufacturing company into a value-adding, vertically integrated business partner to its clients. He has been instrumental in establishing the company’s jewellery business and global distribution network, currently one of the best in the industry. Under his dynamic leadership and able guidance, the company has attained the status of being one of India’s leading diamantaires.

As the Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), this is Shah’s second tenure. During his term from October 9, 2012 to October 16, 2015, he was at the forefront to drive export demand and was successful in strengthening ties with miningcompanies and diamond trade bodies. Among the many important milestones, he was instrumental in organizing GJEPC’s first World Diamond Conference that was attended by Hon. Prime Minister Narendra Modi and Finance Minister Smt. Nirmala Sitharaman. At the Council level, he implemented the policy to have members on a rotation policy so that new people come on board to bring in a fresh perspective and new energy levels.

Here, in an Exclusive Interview with Precious World, Vipul Shah expresses his views about the Indian diamond sector, which is passing through a crucial phase due to the geopolitical conditions prevalent currently…

India’s diamond manufacturing sector has been closed for a long Diwali holiday. The diamond industry seems concerned about the fluctuating global demand and intensifying competition.  Can the government of India support the diamond industry to stabilize and grow exports, thus helping workers retain their jobs?

While the industry faces external pressures, including fluctuating global demand and a dynamic geopolitical landscape, it remains resilient. GJEPC, as the apex body of the sector, is proactively working to expand India’s footprint in emerging markets and collaborating with partners like De Beers, the Natural Diamond Council (NDC) and other global associations for generic diamond promotion to drive demand for diamonds.

The Government of India has also stepped up to support the industry with trade-friendly policies such as the introduction of the Safe Harbor Rule, enabling miners to sell rough diamonds seamlessly through SNZs (Special Notified Zones). Additionally, the Ministry of Commerce, in collaboration with GJEPC, has played a vital role in addressing challenges arising from G7 and EU sanctions on Russian diamonds.

Together, these measures ensure that the industry remains competitive and capable of supporting the millions of skilled workers who rely on it for their livelihoods. While challenges persist, India’s diamond sector continues to innovate, adapt, and build a brighter future.

Despite the challenges, October 2024 witnessed a positive recovery in gem and jewellery exports, led by Cut & Polished Diamonds. Overall gross exports of cut & polished diamonds reached USD 1,403.59 million (Rs. 11,795.83 crores), reflecting a growth of 11.32% in dollar terms and 12.39% in rupee terms compared to USD 1,260.91 million (Rs. 10,495.06 crores) in October 2023. This growth underscores the resilience of India’s diamond sector and its ability to adapt and thrive, even in a fluctuating global market.

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Lab-grown diamond (LGD) production has increased greatly in India during the last few years. The LGD export sector was also doing very well. According to media news, LGD prices have decreased drastically in overseas markets! How do you see this trend affecting the Indian LGD sector going forward?

While the LGD sector initially performed well, it too faced challenges stemming from global geopolitical tensions and reduced demand in key markets. Regarding the decline in prices of LGD, we believe they have now stabilized at levels where further reductions would make manufacturing unviable.

The LGD sector serves a distinct consumer base, and the Indian industry is well-positioned to capitalize on its strong foundation. By focusing on innovation, improving efficiencies, and exploring new market opportunities, the LGD sector is set for a bright and promising future.

Which overseas markets are being explored by the Indian G&J industry leaders to expand their export business? Has the Gem & Jewellery Export Promotion Council (GJEPC) taken steps to assist the export sector in finding newer markets?

Earlier this year, GJEPC led a delegation to Brazil, Colombia, and Panama to strengthen economic ties and boost exports in the Latin American and Caribbean (LAC) region.

In addition to this, GJEPC has undertaken various initiatives to promote Indian gem and jewellery globally. These include hosting major trade shows like IIJS Premiere, Signature, and Tritiya; organizing product focused Buyer-Seller Meets (BSMs); and setting up Indian Pavilions at international exhibitions such as Vicenzaoro, HKTDC Hong Kong, JCK Las Vegas, Jewellery Arabia, JGT Dubai, and more.

GJEPC’s flagship events, like IGJS Dubai and IGJS Jaipur, an ‘international buyers’ only, further showcase Indian craftsmanship to global audiences. Another noteworthy initiative is the India Jewellery Exposition (IJEX) in Dubai, a year-round B2B platform enabling members, particularly MSMEs, to connect with international buyers, secure orders, and access new markets, enhancing India’s export potential.

These concerted efforts underline GJEPC’s commitment to diversifying markets and driving export growth for the Indian gem and jewellery industry.

How is India’s gem & jewellery industry, including the domestic sector, faring right now? What steps should be taken by industry trade organisations, to bring the Indian industry back to its former glory?

India’s gem and jewellery sector remains a vibrant and dynamic market, supported by a favourable GDP growth forecast. The domestic market is thriving, bolstered by a strong festive and extended marriage season.

With regards to exports, the industry saw a notable turnaround in October 2024, with gross exports reaching USD 2,998.04 million (Rs. 25,194.41 crores), reflecting a 9.18% growth in dollar terms and 10.23% in rupee terms compared to October 2023. Key contributors to this growth included cut and polished diamonds, which grew by 11.32%, gold jewellery (plain and studded) grew 8.8%, and polished lab-grown diamonds grew 1.7%. This positive momentum, coupled with the upcoming holiday season in the West, is expected to sustain demand for Indian gems and jewellery.

Just a short while ago, natural diamonds and LGDs from India showed signs of surviving in the world markets as two distinct categories.  Now, over-production of LGD, resulting in prices dipping, low demand, etc. seems to be the scene.  Your thoughts?

Both natural and lab-grown diamonds faced challenges this year due to geopolitical tensions and reduced demand from key markets like the USA and China. However, we are optimistic about a recovery in demand, and early signs of improvement were evident in October.

Diamond exports registered an impressive 11% growth compared to October 2023, while lab-grown diamond exports showed a modest increase of 1.27%. We anticipate this momentum will continue to strengthen in the months ahead.

With the change in the US government, the economy is predicted to bounce back immensely.  Do you see demand for natural diamonds, LGDs, and jewellery bounce back, bringing good cheer to Indian exporters?

Yes, we anticipate a positive rebound in demand for natural diamonds, LGDs, and jewellery, bringing renewed optimism to Indian exporters.

The global gem and jewellery industry is undergoing a transformation, driven by rising demand from markets like the Middle East and India, while the US and Europe continue to be key players.

With President Donald Trump’s election, there is hope for a stabilized geopolitical landscape and strengthened US economy, which could lead to a revival in trade, business, and supply chains. These developments are expected to drive global demand for gems and jewellery, offering significant opportunities for Indian exporters.