India Is Now The Second-best Diamond Market In The World

India Overtakes China!

The global diamond market has witnessed a significant shift, with our nation now proudly standing as the second-largest player in this sparkling industry. Are you curious about which country currently holds the coveted top spot? Read on to discover the leader in the world of diamonds.

In a remarkable turn of events, India has surpassed China to claim the title of the second-largest market for diamonds, marking a pivotal shift in the global luxury landscape. In a recent interview with the prominent media outlet Bloomberg, Al Cook, the CEO of the UK-based diamond powerhouse De Beers Group, confirmed this significant development. Cook highlighted the surge as a result of India’s impressive double-digit market growth, which stands in stark contrast to the declining demand seen in China.

Natural versus Lab-Grown Diamonds: A Comparative Exploration

Cook delved into the rising impact of lab-grown diamonds, especially in the United States, highlighting their significant effect on the demand for natural diamonds. Lab-grown diamonds have significantly impacted demand in the United States. “We must embrace this challenge and articulate the narrative of natural diamonds with greater clarity and impact than ever before,” he stated. The United States currently holds the prestigious position as the leading player in the global diamond marketing arena.

In a fascinating comparison between lab-grown diamonds and their natural counterparts, Cook offered an insightful analogy: “You know, lab-grown diamonds.” It’s akin to acquiring a poster of the Mona Lisa and showcasing it in an art gallery, all while claiming it’s the authentic masterpiece. Natural diamonds, the timeless treasures of the Earth, are formed over the course of a billion years beneath the planet’s surface. In contrast, lab-grown diamonds emerge in a mere three weeks, crafted in a microwave in China, showcasing the remarkable advancements in technology.

With the ongoing expansion of India’s diamond market, experts predict that it will become a crucial player in influencing global demand trends. De Beers is honing in on the authenticity and rich legacy of natural diamonds, a strategy that could prove essential in overcoming the hurdles presented by lab-grown alternatives.

The global diamond industry is undergoing a significant transformation, as China’s luxury market experiences a slowdown while India showcases an impressive growth trajectory. This shift highlights India’s emergence as a prominent player in the luxury and jewellery sectors, positioning it as a rising star on the global stage.

Largest Diamond Market

• Antwerp Diamond District: The largest diamond centre in the world, with a yearly turnover of $54 billion.

Largest Diamond Trading Hub

• Surat Diamond Bourse: The world’s largest diamond trading hub, with a floor space of 660,000 square meters

Other Diamond Markets

• Bharat Diamond Bourse: The world’s largest diamond bourse, located in Mumbai, India.
• India: The second-largest diamond market in the world, after the United States.

India is experiencing a surge in its appetite for natural diamonds, signalling a transformative shift in the dynamics of the global market. This burgeoning demand reflects not only changing consumer preferences but also the country’s growing economic stature on the world stage.

Natural diamonds, forged through the passage of billions of years and now becoming increasingly rare, continue to hold a place of high esteem in the world of luxury and value. The diminishing rates of diamond recovery, coupled with the absence of newly discovered deposits, only serve to heighten their allure and demand in the market. India has emerged as the second-largest market for natural diamond jewellery, showcasing remarkable growth potential in this vibrant sector.

Natural diamonds, some of the most exquisite treasures of our planet, are formed over the course of billions of years in the depths of the Earth’s mantle, showcasing the remarkable processes of nature. These remarkable gems transcend mere symbols of luxury; they embody the essence of finite natural resources. The world of diamonds is facing an intriguing challenge. As the years roll by, the discovery of new diamond deposits has dwindled, leading to a notable decline in recovery rates. This trend has only intensified the allure of these precious gems, making them increasingly scarce in an ever-evolving market. The exceptional nature of these gems, along with their distinctive formation journey and lasting worth, solidifies natural diamonds as a one-of-a-kind and invaluable asset in the world market.

India has now taken the lead over China, emerging as the second-largest market globally for natural diamond jewellery. The diamond acquisition landscape in India remains notably lower than that of more established markets like the US, highlighting a remarkable opportunity for expansion in the country’s natural diamond jewellery sector.

The Allure Of The Rare

As the allure of natural diamonds continues to captivate, their availability is dwindling, making them a rare treasure in today’s world. The diamond recovery landscape has seen a notable decline of 30% since 2005, as the search for significant new deposits has yielded little success in recent years. This unique quality elevates their allure, transforming them into coveted treasures and emblems of distinction.

Changes In The Natural Diamond Sector’s Economy

In recent years, the natural diamond industry has experienced significant economic transformations. The world of natural diamonds has witnessed a significant downturn, with production plummeting from more than 175 million carats each year in the peak period of 2005-2006 to a mere 121 million carats in 2023.

In the face of dwindling supply, the appetite for goods continues to surge, showcasing a resilient demand that defies the odds. In 2024, the global diamond market reached an impressive valuation of around USD 97.57 billion. Looking ahead, this sparkling industry is set to shine even brighter, with projections estimating a growth to USD 138.66 billion by 2032. This remarkable trajectory indicates a compound annual growth rate (CAGR) of 4.5% throughout this exciting period.

Natural diamonds provide significant advantages to the nations that produce them. Across the globe, the natural diamond industry plays a vital role in sustaining the livelihoods of an impressive 10 million individuals. “We are ramping up our traceability initiatives and harnessing cutting-edge technology like blockchain to enhance transparency within our supply chains,” stated Richa Singh, Managing Director for India and the Middle East at the Natural Diamond Council (NDC).

Market Analysis

The De Beers Diamond Insight Report 2023 reveals a remarkable surge in the demand for natural diamond jewellery in India, with a striking 20% increase in 2021, followed by a notable 15% rise in 2022.

In the wake of the pandemic, India’s natural diamond market has witnessed remarkable growth, now valued between USD 3.5 and 4 billion, with an impressive annual increase of up to 20%. Solitaire diamonds are gaining traction as a captivating category nationwide.

According to a 2025 luxury fashion report from McKinsey & Co., the Indian market is set to experience significant growth in diamond-studded jewellery, with projections indicating an impressive increase of 21–23%. In a fascinating analysis by Bain & Co., it has been revealed that the prices of natural diamonds have experienced a steady increase, averaging 3% annually over the past 35 years.

In July 2024, the United States, renowned as the world’s largest market for diamond jewellery, experienced an impressive 6.5% surge in jewellery sales. In a remarkable shift in the global landscape, India has emerged as a powerhouse in the natural diamond jewellery market, now commanding an impressive 11% of global demand. This surge has propelled the nation past China, establishing it as the world’s second-largest market for these exquisite gems.

Insights From The Market And Industry

Natural diamonds, particularly those obtained from trusted suppliers, are gaining traction as a promising investment option, especially among the younger generation of investors. “Their inherent rarity contributes to their appreciating heirloom value, solidifying their position as a distinctive and enduring asset,” remarked Rajesh Kumar Choudhary, an investment banker and industry analyst.

Things To Think About While Purchasing Real Diamonds

Recognise your natural diamonds: The way a diamond interacts with light determines its brilliance and individuality. The meticulous adherence to the 4Cs—cut, clarity, colour, and carat—plays a pivotal role in defining the brilliance and light performance of a diamond.

Verify certification: Always enquire as to whether a certificate will be given for the mounted jewellery and the natural diamond. GIA and IGI take the lead in certifying individual diamonds prior to their mounting, ensuring that each gem’s quality is thoroughly evaluated. Meanwhile, reputable brands offer certification for the jewellery once the diamond is elegantly set, adding an extra layer of assurance for discerning buyers.

Select trustworthy vendors: Choose reputable jewellers that offer transparent return and buyback policies for your peace of mind. Authentic sellers consistently offer clear and precise terms regarding authenticity and resale.

Verify uniformity: To make sure you are purchasing the correct quality, make sure the bands of colour and clarity of each natural diamond in your jewellery are the same.

Enquire about upgrades: To preserve the value of your purchase, seek out jewellers who provide lifetime upgrades or trade-in choices.