India's diamond trade is witnessing a decline due to trade war between the US and China. Exports of cut diamonds have fallen by 18.15 percent in July this year as compared to July of last year. The decline in exports is 15.11 percent as compared to the first 4 months of this year. In the first 4 months of the current financial year, gems and jewelery exports declined by 6.67 percent. As per information, the total exports of Gems & Jewelery in July last year was Rs 20,955.10 crore, which was down 11.08 percent to Rs 18,633.10 crore in July this year. The total exports of Gems & Jewelery stood at Rs 90,295.58 crore between April and July in the last financial year, which fell 6.67 percent to Rs 84,272.30 crore during April to July this year. Gold jewelery exports have also declined. Exports of gold jewelery stood at Rs 7,021.35 crore in July last year, down by 5.62 per cent to Rs 6,626.92 crore in July this year. Gold jewelery exports stood at Rs 28,359.43 crore between April and July this year. This figure is 2.11 percent less than the exports in the same period last year. Exports of gold jewelery stood at Rs 28,970.89 crore in April-July, 2019. Colin Shah, vice-president of the James & Jewelery Export Promotion Council, said that the trade war between the US and China has severely affected the cut and polished diamond exports from India. This trade war has resulted in a steep decline in exports to China. Shah said that due to this new duty imposed on China by the United States, many Chinese diamond manufacturing companies are showing interest in setting up their manufacturing base in India. However, due to high tax rates in India and many issues related to the Special Economic Zone, Chinese companies may face difficulties in setting up units in India.