Indian diamond exporters are relying more on the Asia Pacific market than on the US, the world's biggest importer. Demand from China has gone up 40% over the last year while Japan has been buying premium diamonds in large volumes.

A large chunk of business is coming from online sales, say exporters.

Diamond exporters witnessed a lean period last year due to a slowdown in the US, Europe's debt crisis and political unrest in the Middle-East.

According to the Gems and Jewellery Export Promotion Council, India exported $32,194.49 worth of diamonds and jewellery goods during April-December 2011, up 11.65% from the export figure of $28,834.24 in the corresponding period previous year.

"Sales have shown double-digit growth in the last two months or so. Surprisingly, Japan has emerged out as one of the key buyers in recent times," says Mehul Choksi, CMD of Gitanjali Gems.

The slowdown in diamond business in the US seems to be easing up as traditional buyers return to shops.

Demand for cheaper and smaller diamonds by Chinese buyers coupled with large-scale buying of premium diamonds by Japanese are likely to keep the stores busy ahead of the Valentine's Day.

"We are quite enthralled to see demand coming from extreme parts of China, Vietnam and Japan. We've also seen recovery in the US.

More than half of our exports will be shipped soon to the US for the Valentine's Day," says Aagham Sanghavi, director of Sanghavi Exports that owns the 'Sangini' brand.

The firm exported a record $100 million worth of diamonds from India four years ago before the 2008-09 recession hit the business.

Source: economictimes.indiatimes.com