India is emerging as a bright spot for cut and polished diamonds, despite a slowdown in key markets such as the US and China, according to Amit Pratihari, Managing Director of De Beers India, in an interview with Reuters on Wednesday.
India remains the world’s largest hub for cutting and polishing diamonds, accounting for approximately 90% of the world’s polished diamonds, according to Indian government data.
This year, however, the country’s exports of cut and polished diamonds have declined due to weak demand from China and the US.
As a result, the industry has shifted its focus to the growing domestic market, which surpassed China last year to become the world’s second-largest diamond market.
“China has completely slowed down in the luxury segment… We see India growing very strongly,” Pratihari said.
De Beers, a unit of Anglo American, is the world’s top diamond producer by value and India’s leading supplier of rough diamonds.
Despite challenges in the global market, Pratihari noted signs of recovery in the US and significant growth in the Middle East. He added that he expects the market to recover in the coming months.
In response to weak demand for polished diamonds, Indian processors have reduced their imports of rough diamonds by 22%, bringing total imports to $7.9 billion between April and December, according to India’s Gem and Jewellery Export Promotion Council (GJEPC).
To support the midstream industry—companies that buy rough diamonds, cut, and polish them for retail—De Beers is adjusting the prices of rough diamonds.
This adjustment is crucial as the prices of polished diamonds have fallen more sharply than those of rough diamonds, placing pressure on midstream companies.
“Miners are controlling the supply so that more rough diamonds do not flood the market, which could further reduce polished diamond prices.
However, the pressure on polished prices is felt in the midstream, as there has been no change in retail prices,” Pratihari explained.
India’s exports of cut and polished diamonds declined by 8.3% to $9.76 billion in the April-December period compared to the previous year, according to GJEPC.
Despite these challenges, the Indian diamond industry is positioning itself to thrive as global markets gradually recover.
