Understand how India’s diamond mastery shines globally and what’s on the horizon for this sparkling industry.
Diamonds, those shiny and beautiful gems, hold a special place in our hearts. But did you know that India plays a huge role in the world of diamonds? In fact, every 14 out of 15 diamonds have a connection with India!
Surprised? Well, there is so much more to discover about India’s mighty diamond market and what lies ahead.
Let’s begin.
What’s Happening?
In almost every Hollywood movie, you would have noticed that weddings often feature glittering diamond rings shining with elegance and charm. It is no secret that Americans have a deep fascination with these precious gems. In fact, according to Global News Wire, in 2022, the North American region held the diamond market’s crown, boasting the highest share of revenue at 38.8%.
But you might wonder, where do these enchanting diamonds come from? In 2022, a staggering 41.92 million carats of these dazzling gems were mined in Russia, making it the undisputed champion of diamond mining worldwide. Botswana and Canada followed closely, ranking second and third with production figures of 24.5 and 16.3 million carats of diamonds, respectively, as reported by Statista.
Now, here is the interesting part. When these precious gems are first extracted, they are raw and uncut, far from the exquisite shapes you see in those beautiful jewellery. This is where the magic of diamond cutting and polishing comes in. And guess where these intricate processes happen? Right here in Surat, India!
Yes, you read that correctly! The Indian diamond industry stands as a global leader in the art of cutting and polishing diamonds, exporting an astonishing USD 23 billion worth of these treasures annually.
As mentioned above, 14 out of every 15 diamonds in jewellery worldwide have undergone this transformation in India. Moreover, according to CNBC TV18, it costs about a $100 a carat to cut a diamond in the US. Whereas in India, it costs only $10.
But, even after being so cost-effective, India is facing turbulence in its diamond market.
Current Developments in the Diamond Space
Russia is the top diamond producer globally, and a significant chunk of the world’s rough diamonds, which are then cut and polished, come from Russia, making up about 30%.
However, there is a development to note. On September 15th, 2023, Reuters reported that the G7 countries are likely to announce a ban on importing Russian diamonds. This isn’t a sudden decision; but part of a longer story.
Since Russia invaded Ukraine, many major diamond-importing countries have avoided Russian diamonds.
As a result, starting in April 2023, India has reduced its imports of raw diamonds from Russia by 40%, as reported by Mint.
Now, how will the cutting and polishing work be done with a shortage of raw diamonds?
Growth of the Lab-Grown Diamond Market
In recent years, India has ventured into the lab-grown diamonds market. It is a sector poised to shape the future of the gemstone industry.
These lab-grown diamonds are created through advanced scientific processes, replicating the natural diamond-growing environment in a controlled setting.
India has embraced this evolution, making significant progress. According to a commerce ministry report cited by Moneycontrol, as of May 2022, India was responsible for 15% of the world’s lab-grown diamond production.
This achievement shows India’s growing role in this emerging industry, where technology and innovation are shaping the way forward.
India’s journey continues hand in hand with new technology towards a dynamic future in the diamond market.
P.S.: During the Indian PM’s US visit, he gifted Jill Biden a 7.5-carat lab-grown diamond, priced at Rs 15 lakh compared to Rs 40.5 lakh for its mined counterpart. It is also eco-friendly, emitting nearly 1,00,000 times less CO2 during production.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
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