As discussions around “Trump’s presidency” and its impact on the diamond and jewelry sector flood the media, many analyses focus solely on the U.S. economy, neglecting the intricate dynamics of global supply chains. For a country like India—situated at the heart of the diamond industry’s value chain—this is a critical oversight.
India faces a dual challenge: maintaining its position as a major supplier to Western markets while carving out a unique identity in the global jewelry landscape. Despite a visible slowdown in India’s diamond-processing industry, its scale remains unmatched, with approximately 400,000 workers still active even after significant job cuts.
India’s Two-Pronged Strategy
India’s future approach is defined by two key objectives:
- Catering to Western Markets: A survival strategy aimed at meeting existing demand.
- Building Indian Brands: A forward-looking effort to establish its global identity.
Navigating Political Chess
Indian commentators frequently cite Trump’s focus on protecting U.S. manufacturing, a policy expected to persist during his term. India, as a major supplier to the U.S. jewelry market, anticipates navigating this terrain cautiously. Industry associations may advocate for government-level negotiations to secure favorable treatment by positioning India as a strategic ally in balancing global power dynamics.
Economic and Market Shifts
India’s diamond industry plans to adopt a “dual-track” strategy to cater to two distinct U.S. demographics:
- The affluent consumers with high-end jewelry preferences.
- The middle-class market seeking affordable, high-quality products.
This dual approach is supported by India’s extensive expertise in diamond cutting and jewelry manufacturing. Beyond the U.S., India is exploring opportunities in diversified markets like the Middle East, which is increasingly seen as a favorable and lucrative region.
While China’s jewelry market remains subdued, India’s focus on its production capabilities—especially in jewelry finishing—reflects a strategic pivot toward strengthening its global supply chain position.
Creating an Indian Identity
Indian stakeholders aim to leverage the current geopolitical climate to enhance their global standing. Key initiatives include:
- Promoting “Made in India” as a hallmark of quality, emphasizing sustainable practices like recycled metals and lab-grown diamonds.
- Strengthening ties with the U.S. by capitalizing on tensions in U.S.-China relations.
- Enforcing ethical sourcing policies and increasing certification transparency to appeal to Western consumers.
- Expanding e-commerce channels to integrate Indian brands into the U.S. digital marketplace.