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Diamond Manufacturing industry-India

India holds a distinguished position in the global diamond market, particularly in processing rough diamonds. The country is renowned for its skilled workforce, centuries-old craftsmanship traditions, and diamond polishing and cutting dominance.

The diamond manufacturing industry in India stands as a testament to the nation's prowess in blending traditional skills with modern business strategies. While challenges persist, the industry's resilience, adaptability, and commitment to excellence ensure its sparkling trajectory in the global arena.

Historical Overview:

  • Roots in Antiquity: India's association with diamonds dates back millennia. The famous Koh-i-Noor and Hope diamonds were sourced from the ancient Golconda mines in South India.
  • Modern Transition: Post-independence, India gradually established itself as a hub for diamond polishing and trading, with Surat in Gujarat becoming the epicenter of these activities.

Key Aspects:

  • Global Dominance in Cutting and Polishing: India is responsible for nearly 90% of the world's diamond polishing, making it the global leader in this segment.
  • Economic Significance: The diamond industry employs millions, especially in Gujarat and Maharashtra. Diamond exports are pivotal in India's foreign trade, accounting for a significant portion of the country's gem and jewellery exports.
  • Skill and Expertise: Indian artisans possess unmatched skills in cutting and polishing diamonds, including the most petite rough diamonds, a niche where India excels.
  • Technology Integration: While traditional craftsmanship continues to dominate, there's a growing integration of technology in laser cutting, computer-aided designs, and advanced mapping techniques to enhance precision and reduce wastage.

Challenges & Opportunities:

  • Competition: While India dominates in volume, countries like Belgium and Israel lead in value, dealing with more extensive, premium-quality diamonds.
  • Economic Fluctuations: The diamond industry is susceptible to global economic trends. Economic downturns often lead to reduced luxury spending, impacting diamond sales.
  • Synthetic Diamonds: The rise of lab-grown or synthetic diamonds presents both a challenge and an opportunity. While they might impact natural diamond sales, they also open up a new market segment.
  • Ethical Concerns: "Blood diamonds", or diamonds mined in war zones and sold to finance armed conflict against governments, have been a significant concern. Ensuring ethical sourcing and establishing certification mechanisms is crucial.

Future Outlook:

  • Diversification: Indian companies want to climb the value chain by venturing into jewellery design, branding, and retailing.
  • Sustainability: With rising global concerns about ethical sourcing, Indian companies increasingly focus on sustainable and responsible business practices.
  • Global Expansion: Leading Indian diamond companies are establishing a presence in international markets through acquisitions or partnerships.