India has emerged as a promising market for the cut and polished diamond industry, even as key markets like the U.S. and China show signs of slowing down, according to De Beers India’s Managing Director, Amit Pratihari.
India remains the world’s largest hub for diamond cutting and polishing, accounting for 90% of the world’s polished diamonds, based on Indian government data. However, due to weak demand from China and the U.S., India’s diamond exports have declined, leading the industry to focus on the domestic market. Last year, India surpassed China to become the world’s second-largest market for cut and polished diamonds.
"China has completely slowed down in the luxury segment, but we see India continuing to grow strongly," Pratihari explained in an interview.
De Beers, the world’s leading diamond producer by value and India’s top supplier of rough diamonds, has noticed early signs of recovery in the U.S. and significant growth in the Middle East. Pratihari remains optimistic, saying, "In the next couple of months, we expect to see a recovery."
The slowdown in diamond exports has caused Indian processors to reduce their imports of rough diamonds by 22%, to $7.9 billion between April and December, according to the Gem and Jewellery Export Promotion Council (GJEPC).
To mitigate the impact of falling polished diamond prices, De Beers is adjusting the prices of rough diamonds to support the midstream industry—companies that buy rough diamonds, cut and polish them, and then sell them to retailers. Pratihari stated, "Miners are controlling supply to ensure that too much rough doesn’t flood the market, which would further depress polished diamond prices."
In the first half of the fiscal year, India’s cut and polished diamond exports fell by 8.3%, totaling $9.76 billion compared to the same period in 2023.