PNB fraud fallout: Survey shows drop in diamond demand

A survey by ASSOCHAM said demand for diamond jewellery seems to have decreased by 10-15% within two months.

The Punjab National Bank (PNB) fraud involving diamantaire Nirav Modi seems to have shaken the confidence of diamond jewellery buyers, especially from unorganised jewellers, over concerns on purity of the precious jewellery, resulting in a drop in business, according to a survey released on Friday.

The survey said while the well-known branded jewellery makers issue certificates of purity, the bulk of the trade is still concentrated in the unorganised market, based on mutual faith between consumers and jewellers. (Reuters File)

The survey conducted by industry chamber ASSOCHAM (Associated Chambers of Commerce and Industry of India) said while the well-known branded jewellery makers issue certificates of purity, the bulk of the trade is still concentrated in the unorganised market, based on mutual faith between consumers and jewellers.

The demand for diamond jewellery seems to have decreased by 10-15% within two months, Assocham said.

The survey covered 350 jewellery-makers based in Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bengaluru, Chandigarh and Dehradun.

Assocham said it had also interacted with about 500 working and non-working women in Ahmedabad, Bengaluru, Chennai, Delhi-NCR and Mumbai to gauge their shopping habits.

The survey done in major cities, also found that 65% of the jewellers in the unorganised market, (barring the big corporates and brands) are shifting to traditional pure play gold and silver ornaments over diamond jewellery, as consumers face a crisis of confidence in the purity of the precious stone.