India Diamond Market Overview, 2029

India Diamond Market Overview, 2029

Polished diamonds dominate the diamond market in India accounting for roughly 70-75% of global exports. This sector includes both natural and laboratory-grown diamonds, with the latter gaining popularity in recent years. The market is mostly driven by jewellery, particularly engagement rings and wedding bands, but there is also a strong industrial diamond industry. Diamonds have a strong cultural significance in Indian civilization, since they are used in weddings, religious ceremonies, and gift-giving rituals. There is a notable push toward sustainability and ethical sourcing, which mirrors a larger worldwide trend. Cultural trends in the Indian diamond market include an increasing demand for individualised designs, stacking rings, and temple-inspired jewellery. Events like the India International Jewellery Show (IIJS) serve as important platforms for bringing global attention to the newest trends and advancements. Rising disposable incomes, increased online sales, and growing acceptance of lab-grown diamonds all point to opportunities for market expansion. The presence of a young, expanding population adds to the market's potential, and urbanisation favours internet sales. Regional variances, particularly increased spending in South East and West India, add complexity to the market landscape.

According to the research report ""India Diamond Market Overview, 2029,"" published by Bonafide Research, the India Diamond market is expected to grow with more than 7% CAGR from 2024 to 2029. The cultural value of diamonds, the burgeoning middle class, and the increasing influx of tourism are all expected to drive steady growth. However, obstacles remain, including high import dependence, susceptibility to economic swings, and competition from replacements. Policy and regulatory frameworks, such as the Kimberley Process for conflict-free diamonds and independent certification bodies for lab-grown stones like IGI and GIA, are critical to preserving industry standards. Recent policy measures aim to increase indigenous manufacturing. Sales channels remain broad, with physical storefronts still important for conventional designs and high-end purchases. Online sales, particularly for younger demographics and lab-grown choices, are increasing, highlighting the importance of omnichannel operations. Tanishq, Kalyan Jewellers, and Tribhovandas Bhimji Zaveri are well-known Indian diamond market firms. New entrants, such as Zoya by Mehta and VRAI, are gaining market share by using novel business models. Looking ahead, the Indian diamond market is expected to grow further, with an emphasis on sustainability, the increase of lab-grown diamonds, digitalization, and catering to younger demographic preferences emerging as crucial success factors.

The diamond market is a dynamic terrain with many features, including the distinction between natural and lab-grown/synthetic diamonds. Lab-grown diamonds have gained popularity due to their affordability and low environmental impact, solving ethical concerns about traditional diamond mining operations. This shift in consumer tastes has resulted in an increase in demand for lab-grown alternatives, particularly among environmentally concerned and cost-sensitive consumers. Natural diamonds, on the other hand, continue to lead the market by captivating people, particularly those who value the rarity and symbolism associated with these precious stones. In terms of applications, the diamond market is divided between jewellery and industrial use. While industrial diamonds are important in cutting, drilling, and polishing applications, the jewellery industry dominates the market. Diamonds are culturally significant, notably in engagements, marriages, and anniversaries, and there is a growing emphasis on sustainability and ethical sourcing in response to consumer demand. On the basis of distribution channel, this market is divided into B2B and B2C in which B2B is leading the market and B2C is growing at a steady rate.

The Indian diamond market is unique in the region, distinguished by a strong cutting and polishing sector, considerable trading volumes, and a rich cultural tradition linked with diamond jewellery. India has evolved as a global diamond processing powerhouse, with Surat serving as a major location for diamond cutting and polishing. The country's talented labour and experience in diamond crafting make a substantial contribution to the global supply chain. Other nations in the region, like China and Thailand, play significant roles in the diamond market. China, with its increasing economy and consumer base, has emerged as a major diamond buyer. Furthermore, Chinese enterprises have entered the diamond cutting and processing industry, influencing the global diamond trade. Thailand, renowned for its prowess in gemstone cutting, is a major player in the regional diamond market, particularly in the creation of smaller stones and jewellery. India's diamond business, which is driven by a cultural preference for diamond jewellery in weddings and celebrations, is distinguished by its emphasis on complex patterns and craftsmanship. The country's diamond trade is inextricably linked to its traditional jewellery business, with an emphasis on both internal consumption and export. This distinguishes it from other regional markets, which may be focused on industrial uses or rising consumer tastes. While India's diamond sector faces issues such as fluctuating demand and changing customer preferences, its established place in the global supply chain and the cultural significance of diamonds help to ensure its sustainability. Competition and collaboration with other regional companies create a dynamic landscape in which each country contributes its unique strengths and specialties to the global diamond business.