According to the research report published by Polaris Market Research, the global India diamond cutting and polishing market was valued at USD 18.69 billion in 2021 and is expected to reach USD 25.25 billion by 2030, to grow at a CAGR of 3.4% during the forecast period.
Market’s Growth Drivers
Several factors have fueled the growth of India’s diamond cutting and polishing sector. First, India’s abundant supply of skilled labor at competitive costs remains unmatched globally. Generations of artisans have refined the precision techniques required for transforming rough diamonds into exquisite gems, ensuring high-quality output that meets international standards.
Second, increasing global demand for polished diamonds is driving market expansion. Rising disposable incomes in emerging markets, coupled with the revival of the luxury jewelry segment in Europe, North America, and Asia, has contributed to steady demand growth. Bridal and festive seasons, particularly in regions such as the Middle East and the United States, spur significant demand for polished diamonds, benefiting Indian manufacturers.
Third, government support and trade facilitation policies have further strengthened India’s market position. Initiatives such as simplified export procedures, tax incentives under the Gem & Jewellery Export Promotion Council (GJEPC), and the establishment of special economic zones (SEZs) dedicated to diamond processing have improved operational efficiency and profitability.
Additionally, technological innovations, such as laser cutting, computer-aided design (CAD), and automated polishing systems, have enhanced productivity and reduced wastage. The adoption of sustainable and eco-friendly practices in diamond processing is increasingly influencing buyers, boosting India’s competitiveness in the global market.
Key Trends
One of the most prominent trends in the Indian diamond cutting and polishing market is the shift toward precision and automation. While traditional handcrafting remains vital for high-value stones, mechanization of mid-range diamond processing has improved efficiency, reduced turnaround time, and minimized human error.
Another emerging trend is the growing focus on ethically sourced and traceable diamonds. With consumers becoming increasingly conscious of responsible sourcing, India’s diamond industry is gradually adapting to ensure compliance with Kimberley Process Certification and other ethical sourcing standards. This trend not only reinforces credibility but also opens new markets that prioritize ethical practices.
Moreover, the rise of lab-grown diamonds has begun to impact market dynamics. Although natural diamonds dominate the high-end segment, lab-grown alternatives, which are often more affordable and environmentally sustainable, are carving out a significant share. Indian manufacturers are beginning to explore this niche by offering specialized cutting and polishing services for synthetic diamonds.
Collaborations between international jewelry brands and Indian manufacturers are also becoming more common. Such partnerships ensure consistent quality, enhance innovation in diamond designs, and facilitate direct market access for Indian producers in overseas markets.
Research Scope
The research scope of India’s diamond cutting and polishing market includes analysis of domestic and international trade flows, technological adoption, labor dynamics, and regulatory frameworks. Studies focus on understanding market trends, growth drivers, and the competitive landscape of both small-scale artisanal workshops and large-scale industrial processing units.
Research also examines consumer preferences in key export markets, price fluctuations in rough diamond procurement, and the influence of macroeconomic factors, such as currency volatility and global economic cycles, on trade patterns. Additionally, attention is paid to sustainability practices and corporate social responsibility initiatives within the industry, reflecting evolving global expectations.
Major Key Players:
- Blue Star Diamonds
- Bonas Group
- KGK Group
- Kristall Production Corporation
- Moshe Namdar Diamonds LTD
𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐓𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 𝐇𝐞𝐫𝐞: https://www.polarismarketresearch.com/industry-analysis/india-diamond-cutting-and-polishing-market
Market Segmentation
The India diamond cutting and polishing market can be segmented based on various parameters, including diamond size, type, application, and end-user.
- By Diamond Size:
- Small diamonds (<0.5 carats) – widely used in mass-market jewelry, costume jewelry, and fashion accessories.
- Medium diamonds (0.5–2 carats) – popular in engagement rings and mid-range luxury products.
- Large diamonds (>2 carats) – used in high-end bespoke jewelry and luxury collections.
- By Diamond Type:
- Natural diamonds – the primary focus of India’s traditional cutting and polishing industry.
- Lab-grown diamonds – an emerging segment gaining traction due to affordability and ethical appeal.
- By Application:
- Jewelry – the largest segment, covering rings, earrings, necklaces, bracelets, and other ornamental items.
- Industrial – diamonds used in cutting, drilling, and abrasives, requiring specialized polishing techniques.
- By End-User:
- Domestic jewelry manufacturers – catering to local markets with both traditional and contemporary designs.
- Export markets – including luxury brands, wholesalers, and international jewelry chains.
Regional Insights
The Indian diamond cutting and polishing industry is heavily concentrated in Gujarat, with Surat being the epicenter. The city hosts thousands of workshops and processing units, supported by a robust ecosystem of diamond merchants, banks, and export facilitation services. Other notable hubs include Mumbai and Jaipur, focusing primarily on jewelry design and high-value diamond trading.
Challenges and Opportunities
Despite its strong market position, the industry faces certain challenges. Fluctuations in rough diamond supply and prices, labor-intensive processes, and competition from emerging markets like China and Thailand are persistent concerns. Additionally, the growing prominence of lab-grown diamonds requires traditional processors to diversify offerings and invest in new technologies.
Opportunities lie in expanding into high-value segments, embracing technological innovations, and enhancing global partnerships. Investments in skill development programs and automation can further elevate productivity and quality, reinforcing India’s leadership in the global diamond value chain.
Conclusion
The India diamond cutting and polishing market remains a cornerstone of the global jewelry industry. With its deep-rooted expertise, cost competitiveness, and growing adoption of technology, India continues to shape the brilliance of diamonds worldwide. While challenges exist, particularly in terms of supply volatility and changing consumer preferences, the market’s growth prospects remain strong, driven by innovation, ethical practices, and expanding global demand. As India balances tradition with modernity, it is poised to maintain its position as the world’s diamond capital, crafting not just stones, but enduring value for the global jewelry market.
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