INDIA TAKES CENTRE STAGE As China's Demand Ebbs, India Rises as the New Diamond Powerhouse

India is establishing itself as a global diamond powerhouse, thanks to its burgeoning middle class, a rising disposable income, unmatched craftsmanship, skilled labour force, cutting-edge technology, and strategic collaborations. Anjana Vaswani takes an in-depth look at these factors that collectively position the country to mark its dominance in the diamond industry

- Anjana Vaswani

In 2023, China's economy encountered significant challenges, including reduced consumer spending and a sluggish post-pandemic recovery. These factors contributed to a sharp decline in demand for luxury items such as natural diamonds, a sector that had heavily depended on Chinese consumers for the past two decades. This downturn, while a setback for the global diamond industry, has simultaneously created a strategic opportunity for India to step into the spotlight as the next major player in the global diamond market.

India's rise in the diamond industry is not just anecdotal; it is backed by verifiable data. According to the India Diamond Industry Outlook 2022-2026 of ReportLinker, an AI-driven market intelligence platform, India's diamond imports are expected to climb to $ 33 billion by 2026, up from $ 29 billion in 2021. This represents an average annual growth rate of 2.3% since 1993. On the export side, the outlook is equally promising. India's diamond exports are projected to reach $30 billion by 2026, up from $ 27 billion in 2021, with an annual growth rate of 2.6% over the past three decades. The US, Belgium, and Israel are key markets for India's diamond exports.

DECLINE OF DEMAND IN CHINA = OPPORTUNITY FOR INDIA

India's growing stature as a diamond hub was evident at Jewellery & Gem WORLD Hong Kong 2024, where Indian buyers filled the gap left by Chinese buyers - the presence of the Chinese was markedly less, while that of Indians was noticeably higher. Says Ankit Shah, Ankit Gems, Mumbai, who was present at the event, "India is poised for significant growth in the global diamond industry, driven by its dual role as a leading manufacturer of diamonds, and an emerging key player in the diamond jewellery consumption market."