The Middle East conflict has disrupted India’s gems and jewellery exports, as well as imports of rough diamonds from the United Arab Emirates (UAE), due
to extensive flight cancellations and airship closures. Dubai has suspended numerous cargo and passenger flights, affecting trade flows, according to a report by Reuters. "Exports and imports from the Middle East have come to a standstill, and there are no logistics in place to move goods," Vipul Shah, managing director of Asian Star, a leading diamond exporter, told Reuters. The Middle East accounts for nearly a quarter of India’s gems and jewellery exports of around $50 billion, while the UAE makes up more than two-thirds of the country’s rough diamond exports. India, the world’s largest cutting and polishing hub, handles 9 out of every 10 diamonds processed globally, the report added. According to sources mentioned in the report, India’s gems and jewellery exports will fall in March, as Dubai is not only a major market for gems and jewellery but also a key intermediary between diamond-producing nations and major consumer markets. India has been relying on diamonds from the Middle East after its top buyer, the United States, imposed hefty tariffs on Indian goods last year and curtailed purchases. The overseas buyers are cautious about placing orders amid the volatility in the Indian Rupee (INR)-US dollar (USD) exchange rate and other logistical constraints, said Colin Shah, MD, Kama Jewellery, to Reuters. INR fell to a record low of 92.3025 against the USD on Wednesday. Both buyers and sellers know that the war has disrupted trade, so they are agreeing to delay shipments, a Mumbai-based diamond exporter informed Reuters. Also Read: US-Iran War: Is The Petrodollar Equation The Real Reason Behind Trump's Invasion?
