Escalating conflict in the Middle East is raising fresh concerns for India’s gems and jewellery industry, with exporters warning that disruptions to international flights and trade routes could affect shipments to key markets such as Israel and Dubai.
Industry stakeholders say the tensions, following joint military action by the United States and Israel against Iran, are already creating uncertainty in global diamond trading networks that rely heavily on rapid logistics and stable air connectivity.
Diamond trader Dinesh Navadiya said the sector could face immediate challenges due to flight disruptions and airport closures across parts of the region, which play a central role in the international diamond trade.
“If we analyse the statistics, from April 2024 to March 2025, our exports to Israel stood at $548.27 million. After tariff-related issues were resolved, exports between March 2025 and February 2026 were $514.20 million. Our business with Israel was growing,” Navadiya said.
He noted that imports from Israel in 2024–25 were valued at $259.17 million, while exports between February 2025 and February 2026 reached $337.07 million, indicating continued demand, particularly for high-value and solitaire diamonds.
Israel remains a key market for both raw materials and the premium diamond trade. However, the current conflict has raised concerns about operational disruptions.
“Israel is a major market for raw materials and high-cost diamonds. Due to the war, industry-wide tension will increase. International flight delays, airport closures in Israel, and many countries are closed too, due to which problems can arise here,” Navadiya said.
Dubai, another crucial hub for the global diamond supply chain, also plays a significant role in India’s trade flows. According to industry data, exports to Dubai during 2024–25 were valued at $7.86 billion, while imports from the emirate stood at about $11 billion.
Navadiya said Dubai serves as a major global trading center for rough diamonds and raw materials used by India’s cutting and polishing industry.
“Dubai is the world’s largest trading market for raw materials. We import raw materials from there. Due to the war, export and import activities will face difficulties. If the conflict continues for a long time, the gems and jewellery sector will face a major impact,” he said.
Surat and Mumbai, India’s two major diamond trading hubs, together export roughly 400 to 500 parcels daily and import around 250 to 300 parcels through Dubai. However, industry participants say the ongoing conflict has already disrupted these logistics flows.
“Due to flight cancellations and the ongoing tense situation, everything has come to a halt,” Navadiya said.
Surat, widely known as India’s Diamond City, remains a vital center in the global diamond supply chain. Official figures show the city recorded exports worth $10.55 billion in the 2024–25 financial year, with the gems and jewellery segment accounting for nearly 70% of total outbound trade.
Key export destinations include the United States, Hong Kong, and the United Arab Emirates, while Israel and Belgium also remain important trading partners.
Given the sector’s deep integration with global supply chains, industry representatives warn that prolonged instability in the Middle East could disrupt raw material availability, delay shipments, and affect export commitments.
Stakeholders say the situation is being closely monitored as the industry prepares for potential volatility in international diamond trade flows.
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