Are diamonds losing their allure in India?

Diamonds may be forever, but the hardest known natural material seems to be losing its famed allure.

The domestic industry, which in 2009 suffered its worst downturn, fears sales will decline 10-15 per cent in domestic as well as international markets this festive season.

The erosion of rupee value against the dollar and sluggish demand from key foreign markets are cited as the main reasons for declining sales.

The overseas demand is low due to fears of a double-dip recession in the US and the sovereign debt crisis in Europe.

Image: A model displays a diamond ring with a 9.27-carat Golconda pink diamond, bottom, and a pink diamond ring with a 6.01-carat cushion-shaped blue diamond, top, during the Sotheby's auction preview in Hong Kong.

Text: Business Standard

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