How Indian Brands are Flourishing in the Global Diamond Market

The Indian diamond industry is at the doorstep of expansion today and the future of Indian brands is as bright as a real diamond
How Indian Brands are Flourishing in the Global Diamond Market

The world has been witnessing a great boom of India-born brands in the diamond industry globally. Today, some of the world’s largest diamond companies are Indian and India is rated among the fastest growing diamond markets in the world. Today the Indian diamond industry is a pioneer in the overall gem industry and a world leader in the manufacturing of refined diamonds.

It is said that India is home to the largest diamond cutting and polishing facility in the world, which produces more than 90 percent of the world's polished diamonds. This is ascribed to elements like the simplicity of finding highly skilled labor, advanced technology, and cheaper operating expenses.

Diamonds are long-lasting and hardy and with regular cleaning and polishing, the diamond continues to look as good as new for years to come, maintaining its shimmer and shine. No other jewelry piece looks as royal and divine as diamond jewelry looks and no other gemstone can sparkle as a real diamond does.

The Indian diamond industry is at the doorstep of expansion today and the future of Indian brands is as bright as a real diamond. With the rapidly growing middle-class population, rapid urbanization, increasing personal disposable income, and consumer preference toward investment in real gems, stones, and jewelry, the diamond industry is all set for a great future ahead. Consumers would continue to spend on valuable products that convey a strong emotional bonding, especially in the post-pandemic world. India contributes around 19 percent share in the world’s total exports of diamonds and is the top exporting nation for cut and polished diamonds across the globe, as per the ITC trade map.
 
The economic boom coupled with the retail sales boom has made an easy and smooth pathway for all diamond jewelry brands. Brands have been extensively growing like never before, although the apprehension of brand clusters remains to be a source of worry. Due to the economic boom in the country, India is emerging as a very big consumer market for jewelry and offering a very lucrative opportunity for major brands to establish a presence in the Indian market. Focused marketing creating awareness and demand for the products, innovative product range creating excitement and expanding the category as well as transparency and adherence to best practices will help build consumer confidence in the category
 
The production and processing capabilities of the diamond industry in India are thought to be the best. The COVID-19 epidemic showed the sector's unpredictability, therefore the diamond industry must concentrate on capacity-building initiatives through policy support, investments, knowledge, and capacity building. The COVID-19 pandemic hit all spheres of life badly all around the globe and trade activities in the gems and jewelry segment are no exception. The global supply chains were heavily impacted on account of abrupt nationwide lockdowns in different parts of the world. As a result, demand-side constraints, limited freight movement, a dip in the purchase of luxury items and unavailability of human resources, etc. These effects trickled down to India.
 
However, as the situation is getting better, the Indian diamond industry is now considered to be the strongest in terms of its production and processing capabilities. Recently, India’s Finance Minister, Nirmala Sitharaman announced a boost to the export of jewelry through e-commerce and a drop in import duty of cut and polished diamonds, with no marked change for gold imports in the Union Budget 2022. The local and global diamond and jewelry industry welcomed the pro-reform and export growth-oriented Union Budget. Reduction in import duty on cut and polished diamonds will surely further help the Indian diamond brands in strengthening the sector and retain their leadership position.
 
India is all set to become a major market for the processing of laboratory-grown diamonds. China is said to be the first in LGD production, followed by Singapore and the USA. The total LGD market share has been growing steadily and is expected to account for 10 percent (estimated at 19.2 million carats) of the entire worldwide diamond market by 2030.
 

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