NAME:- Ansh Kejriwal

Roll No:- 24/216

Semester:- 2nd

Course:- B.A. Prog (eco+eng)

Subject:- Personal Financial Planning

Topic:- Blog On Diamond Production In

                                    INDIA           




Submitted To:- Mrs. Neelam Kapoor  




                     History of Diamond  

Diamond was first discovered and mined in India. In Sanskrit it was addressed as ‘vajra’, ‘thunderbolt’ and ‘indrayudha’ – warrior god Indra’s weapon. Early descriptions of diamond date back to the 4th century BC, by when diamonds were a valuable material already. The earliest known mention of a diamond was found in a Sanskrit manuscript by a minister in a northern Indian dynasty, dated from 320-296 BCE.  

Diamonds in Europe

It was only in the 13th century that some diamonds began appearing in the European lands. After the development of diamond faceting, diamonds became larger and more prominent by the 16th century. These beautiful stones gradually started dominating small jewels by the 17th century and the larger ones by the 18th century.

France’s Louis IX established a law in the 13th century, reserving diamonds for the king due to its rarity and value. Later diamonds made it to the jewellery of royal men and women, then the European aristocracy and then the wealthy merchant class.

Earliest diamond-cutting industry

Due to the increased demand for diamonds, the earliest diamond-cutting industry was set up in Venice (trade capital), sometime after 1330. By the 14th century diamond cutting made its way to Paris.

Diamonds today

Diamonds are mined in about 25 countries today. Their production has also increased enormously; India producing around 100 million carats annually.

                    INTRODUCTION

Indian Jewellry is made scrupulously by hand and was traditionally crafted by family jewelers skilled in a particular style. India`s artisans with traditional skills dominated contemporary techniques to provide the world with jewelry that conformed to international standards. Today there are new generations of young designers dominating the world market, apart from a host of established houses that design the fashion jewelry. Across India and several jewelry design institutes, encouraging fresh ideas and talent. The zenith body Gem and Jewelry Export Promotion Council (GJEPC) is dazzling and growing industry. The council was set up under the patronage of the Ministry of Commerce in 1966 and has helped to form a better understanding between the diamond industry and the government. The chief function of the council is to develop and promote the export of gems and jewelry from India, to contribute towards establishing a code of ethics to ensure that fair trade practices are followed in the jewelry arena.

Indian diamond Industry is at the doorstep of expansion today. The Indian government has legitimated the setting up of bonded warehouses in order to enable diamonds to be brought into the country to be sold. The unsold diamonds could be exported without any duty or tax. Government has been creating the Export Promotion Zones (EPZ) and Special Economic Zones (SEZ) in order to help and promote the export of gems and jewelry from the country and is undoubtedly a new step for the betterment of the industry.

The Indian diamond industry has its origine in the villages, towns and cities of Gujarat, where most of the processing facilities are installed; the corporate operations of marketing and finance for all the diamond traders takes place from Mumbai, where all the major traders have their registered offices. Majority of the diamantaires procure the rough diamonds from the Diamond Trading Company which holds the maximum share of rough diamonds in the world.

India’s diamond industry is expected to remain stable on gems and jewellery exports, credit rating agency Crisil said. “The credit risk profiles of India’s diamond and diamond jewellery players will remain stable over the medium term, on the back of steady demand expected in key markets, and improved prices of polished diamonds in 2010-11,” Crisil said in a study of the 142 players in the industry.

With the improvement in global demand, the prices of cut and polished diamonds rebounded in the second half of 2009-10 from weak levels in the second half of 2008-09. Looking ahead, Crisil said, “Demand from the US market, which accounts for more than half of India’s gems and jewellery exports, will be steady, backed by a stable economy, and will result in moderate buoyancy in exports by Indian players over the medium term.” However, it cautioned that the prevailing crisis in Europe may affect exports.

        ROLE OF INDIA IN GLOBAL 

          DIAMOND TRADE                 

For over 1000 years, until ca 1726, India was the world’s only source of diamonds. As of 2022, India not only leads as the largest exporter of cut and polished natural diamonds but also ranks as the top importer by value—diamonds are the country’s fifth most imported product. Major markets for Indian diamonds now include the United Arab Emirates, the United States, Hong Kong, Belgium and Thailand. The future is bright too: India and China are poised to outpace the US, which currently represents 50% of global diamond demand, by 2030.

ndia not only cuts and polishes the majority of the world’s natural diamonds, but it is also the birthplace of some of the most legendary diamonds in history that have captured the world’s imagination. The Koh-i-noor, the Evening Star, and the Hope Diamond all originated in southern India, along the Krishna river bed. This region, home to the famed Golconda mines, was shaped by ancient geological formations. The natural diamonds found here are renowned for their translucence, and a remarkable ability to let light pass through. Known as Type IIA, this ethereal appearance occurs when diamonds are chemically pure, free from nitrogen or boron impurities, and regarded as the most flawless. So prized are these stones that the term ‘Golconda’ has become synonymous with the finest diamonds–those of the highest quality, or ‘first water’.

The beating nerve centre of India’s natural diamond cutting, polishing, and finishing industry is the historic Bharat Diamond Bourse (BDB), located in Mumbai, As one of the world’s largest diamond bourse, its scale is remarkable, with staggering numbers: established in 1984, the Mumbai facility, spans 20 acres, houses 2500 diamond traders, and handles 98% of India’s diamond exports.

New Generation Takes On Diamond

Today, Gen Z stands as the most influential consumer group, followed by millennials. Along with setting trends in fashion, work, and culture, they are also likely to define the future trajectory of the luxury market. According to the BCG Fashion & Luxury market study 2023, Gen Zs will account for 76% of the luxury goods market by 2026. These consumers, with a greater spending power than the previous generations, are increasingly prioritising brands and products that are authentic, ethical, and sustainable–and natural diamonds perfectly align with these values. The numbers reflect this shift. In India, where gold jewellery has long held cultural and economic significance, modern, globally minded young blood is taking over: millennials and Gen Z make up 70% of the population, making India the youngest major diamond-consuming country.



 Economic shifts in the natural diamond Industry

The natural diamond industry has witnessed notable economic shifts in recent years. Global production of natural diamonds has declined from over 175 million carats annually in 2005–2006 to 121 million carats in 2023.



Despite this decline in supply, demand remains strong. The global diamond market was valued at approximately USD 97.57 billion in 2024 and is projected to grow to USD 138.66 billion by 2032, reflecting a compound annual growth rate (CAGR) of 4.5% over this period.

“Natural diamonds benefit the countries from which they originate. The natural diamond industry supports the livelihood of 10 million people worldwide. It is accelerating its traceability initiatives and leveraging technology such as blockchain to bring transparency to its supply chains,” said Richa Singh, MD, India and Middle East, Natural Diamond Council (NDC).

According to the De Beers Diamond Insight Report 2023, demand for natural diamond jewellery in India surged by 20% in 2021, followed by a 15% increase in 2022.





          POPULAR BRANDS

India's diamond industry is renowned for its exceptional craftsmanship and innovation, encompassing both natural and lab-grown diamonds. Here are some of the leading brands that have significantly influenced the Indian diamond market:

1. Titan Company Limited

subsidiary of the Tata Group, Titan is India's largest jewelry company by market capitalization, known for its popular brands like Tanishq and CaratLane. These brands offer a wide range of diamond jewelry, blending traditional designs with modern aesthetics.

2.Kalyan Jewellers

Established in 1993, Kalyan Jewellers has become a household name in India, offering an extensive collection of diamond and gold jewelry. The brand is recognized for its commitment to quality and transparency, operating numerous showrooms across the country.

3. Malabar Gold and Diamonds

Founded in 1993, Malabar Gold and Diamonds has expanded globally, offering a diverse range of diamond jewelry. The brand is known for its exquisite designs and ethical business practices, with a strong presence in India and abroad.

4. Senco Gold and Diamonds

With a market capitalization exceeding 991 billion Indian rupees as of October 2024, Senco Gold and Diamonds is a prominent player in the Indian jewelry market. The brand offers a wide array of diamond jewelry, catering to diverse customer preferences.

5. Limelight Diamonds

Limelight Diamonds is a leading Indian brand specializing in lab-grown diamonds, offering sustainable and luxurious jewelry options. The brand combines advanced technology with traditional craftsmanship to create exquisite pieces.



Key Stages in Diamond Processing

 

1. Import of Rough Diamonds – India imports rough diamonds from mining countries like Russia, Botswana, Canada, and South Africa.


2. Cutting and Polishing – Skilled workers cut diamonds using laser technology and manual craftsmanship.

 

3. Grading and Certification – Diamonds are graded based on the 4Cs (Carat, Cut, Color, Clarity) and certified by international organizations such as the Gemological Institute of America (GIA).


4. Export and Retail – After processing, diamonds are exported to major markets like the USA, UAE, Hong Kong, and Belgium.


Challenges in the Indian Diamond Industry

 1.Dependence on Rough Diamond Imports

.India lacks major diamond mines and imports nearly 90% of its rough diamonds from             Russia, Africa, and Canada.

.Fluctuations in global rough diamond supply impact prices and profitability.

2. Increasing Global Competition

. Countries like China, Botswana, and Namibia are improving their cutting and polishing          capabilities.

. India faces competition in the lab-grown diamond segment, particularly from China and         the USA.

 

3. Adoption of Advanced Technology

. Many small diamond firms still use traditional hand-cutting techniques, while global             competitors use AI-driven precision cutting.

. Investment in automation and digital manufacturing is essential to maintain India’s         edge

4.Ethical Sourcing and Sustainability Concerns

. Global demand for conflict-free diamonds (also called “ethical diamonds”) is                       increasing.

. India must ensure its diamond trade adheres to the Kimberley Process Certification           Scheme (KPCS), preventing the sale of “blood diamonds.”

. Rising popularity of lab-grown diamonds could disrupt the natural diamond market.


Future Prospects and Government Initiatives

 

. Expansion of Domestic Jewelry Market – Rising middle-class and wedding demand boost local sales.

. Technology Adoption – Use of AI and automation in diamond processing.

. Government Support – Schemes like the Gem & Jewellery Export Promotion Council (GJEPC) and tax incentives.

. Sustainability and Ethical Sourcing – Growing focus on lab-grown diamonds and responsible mining.





               Conclusion

 

The Indian diamond industry has transformed from a historic mining hub to the world’s largest diamond processing and export center. Despite challenges like dependence on imports and competition, India continues to lead due to its skilled workforce, low-cost processing, and government support. With increasing investment in technology, sustainability, and lab-grown diamonds, the future of the industry looks promising. However, India must innovate and adapt to maintain its dominance in the global market.

References

 1. Gem & Jewellery Export Promotion Council (GJEPC) Reports – www.gjepc.org

 2. Ministry of Commerce & Industry, Government of India – www.commerce.gov.in

 3. Bharat Diamond Bourse – www.bdbindia.org

 4. Gemological Institute of America (GIA) Reports – www.gia.edu

 5. World Diamond Council (WDC) Reports on Ethical Sourcing


























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