An Indian irony: Glitter of fastest-growing diamond market eludes hub Surat
The Indian retail jewellery market may be on an upswing, but traditional diamond-polishing units and their artisans, most of whom are based in Surat, are suffering heavily
by Jumana Shah · India TodayIn Short
- India becomes fastest growing diamond market globally
- De Beers and GJEPC launch INDRA to boost natural diamond sales
- US shifts preference to lab-grown diamonds, impacting demand
A high-profile gems and jewellery industry event in Mumbai on January 7 announced that India was now the fastest growing diamond market in the world. The programme also marked a strategic collaboration between the De Beers Group, the world’s leading diamond company, and the Gem and Jewellery Export Promotion Council (GJEPC), India’s apex jewellery trade body, for honing the market shine of natural diamonds.
Both the announcement and the collaboration are significant as they come amidst severe global headwinds in the natural diamond market, where manufacturers are facing a glut in supply due to falling demand. American markets, traditionally the biggest for diamonds, have shifted preferences from the uber premium natural diamonds to the cheaper lab-grown variants.
To address the glut, jewellery and natural diamond manufacturers have decided to focus their resources on developing the Indian market and spreading awareness about the brilliance and feel of natural diamonds. To this end, the De Beers-GJEPC collaboration, titled INDRA (Indian Natural Diamond Retailer Alliance), will support independent retailers with interesting marketing skills, such as immersive storytelling and training in local languages to tap the market potential of natural diamonds in smaller towns.
“The Indian market, currently valued at $85 billion (Rs 7.3 lakh crore), is projected to reach $130 billion (Rs 11.1 lakh crore) by 2030,” said GJEPC chairman Vipul Shah at the event. “We are hoping to harness India’s dynamic young population, the rise of organised players, and the increasing demand across bridal, everyday wear, fashion and entry-level jewellery.”
Sandrine Conseiller, CEO of De Beers Brands, said India has become the second-largest market in the world for retail sales of diamond jewellery. “However, the penetration of natural diamonds stands at only around 10 per cent, well below the rate seen in mature jewellery markets such as the US,” said Conseiller.
The Indian retail jewellery market may be on an upswing, but traditional diamond-polishing units and their artisans, most of whom are based in Surat, are suffering heavily. Bhavesh Tank, vice-president of the Diamond Workers’ Union Gujarat, told INDIA TODAY that at least a third of Surat’s diamond polishing units had not reopened after the Diwali break in 2024.
Tank said the steady erosion of demand from US and near-shutdown of retail markets in China and Hong Kong after the pandemic had resulted in record-high inventory pile-ups of polished diamonds. Moreover, western countries sanctioned Russian diamond miner Alrosa, one of the major suppliers of small-sized rough diamonds to Surat, over the Ukraine war.
This has pulled down the wholesale price of natural diamonds by around 30 per cent in the past two years. To prevent any further slide, the diamantaires have collectively decided to ease the existing stock. Hence, the thrust on domestic retail jewellery markets and a coordinated attempt to increase awareness about natural diamonds. This is expected to help counter the export losses and threat from the Lab Grown Diamonds, which have the same properties as of natural diamonds.
The global upheaval has impacted the lives of Surat artisans, who sit at the bottom of this glamorous pyramid. The artisans, mostly uneducated farmers who have migrated from arid districts of Saurashtra, are left with little money to make ends meet, and many of them have reportedly been taking their children out of schools due to their inability to pay fees.
Massive lay-offs and suicides forced by financial distress have rattled the community. “At least 50 people have died by suicide over the past two years due to loss of income from reduced work hours and longer breaks [announced by diamond units],” said Tank. Thousands have been laid off.
He said the Diamond Workers’ Union Gujarat, representing over 30,000 diamond artisans, had written half a dozen letters to Gujarat chief minister Bhupendra Patel and several letters to the state labour commissioner and industries minister, demanding a relief package for the low-income artisans, but didn’t receive any response.