Market Overview
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.
India’s dominance in the diamond value chain is not limited to labor cost advantages; it is increasingly being driven by the adoption of automation, artificial intelligence (AI), and computer-aided design (CAD) technologies. These innovations ensure higher precision and yield, reducing wastage while increasing throughput, thereby maintaining India's competitive edge in the global market.
Market Segmentation
The India diamond cutting and polishing market can be segmented by product type, technology, end use, and processing method.
1. By Product Type
-
Rough Diamonds: India continues to import large volumes of rough diamonds primarily for processing and export.
-
Polished Diamonds: These constitute the bulk of the country’s exports, with growing demand for various cuts and carats.
-
Synthetic Diamonds: With increasing acceptance in the jewelry and industrial sectors, synthetic diamonds are gaining momentum due to their affordability and eco-friendliness.
2. By Technology
-
Traditional Methods: Manual cutting and polishing remain prevalent, especially for lower-grade stones and small-scale operations.
-
Automated Technologies: Laser cutting, AI-based mapping, and robotic polishing are on the rise, improving efficiency and consistency.
-
Hybrid Approaches: Combining manual expertise with machine precision, hybrid techniques are widely used to optimize output quality.
3. By End Use
-
Jewelry Industry: The largest consumer of cut and polished diamonds in India, driven by domestic and international demand.
-
Industrial Applications: Diamonds are used for drilling, cutting, and abrasive applications in sectors such as mining and electronics.
-
Investment Grade Diamonds: These are gaining popularity as alternative investment tools, particularly among high-net-worth individuals.
4. By Processing Method
-
Cleaving: Primarily used to split rough diamonds along natural lines.
-
Sawing: Often executed using laser technology to improve accuracy.
-
Bruting and Polishing: Manual and automated systems are used to finalize the diamond's shape and brilliance.
Browse more:https://www.polarismarketresearch.com/industry-analysis/india-diamond-cutting-and-polishing-market
Regional Analysis
India’s diamond cutting and polishing industry is regionally concentrated but expanding to newer regions with supportive policies and infrastructure.
1. Gujarat
The state of Gujarat, particularly the city of Surat, is the epicenter of India’s diamond processing industry. Surat accounts for nearly 85% of all diamonds processed in the country. Its well-established ecosystem of skilled labor, logistics support, and high-tech processing units makes it the industry’s cornerstone. The Gujarat government’s initiatives to create diamond bourses and training centers are further cementing its leadership.
2. Maharashtra
Mumbai serves as a vital node for trading, export, and design functions. The city hosts major gem and jewelry councils and benefits from strong port connectivity. It also plays a crucial role in high-value diamond exports and design innovation.
3. Rajasthan
Rajasthan is emerging as a secondary hub for polishing and crafting colored stones and smaller diamonds. It offers a cost advantage and is developing industrial parks to attract gemstone-related businesses.
4. Other States
States like Tamil Nadu, Telangana, and West Bengal are gradually making inroads into the diamond processing value chain by offering training centers, subsidies, and easier access to global markets through ports and logistics corridors.
Key Industry Trends
Several trends are shaping the current and future outlook of the India diamond cutting and polishing market:
1. Adoption of Green Technology
As sustainability becomes a priority, companies are shifting toward eco-friendly production methods. Energy-efficient laser cutting, reduced water usage, and recycling of diamond dust are gaining traction.
2. Digital Supply Chains
Blockchain, Internet of Things (IoT), and digital ledger technologies are being used to ensure traceability and transparency across the supply chain. This is especially crucial for maintaining ethical sourcing credentials and meeting consumer expectations.
3. Evolving Consumer Preferences
Millennial and Gen Z buyers increasingly demand personalized and ethically sourced diamonds. This shift is influencing processing choices, such as the growing popularity of lab-grown diamonds and precision cuts.
4. Global Trade Dynamics
Trade relations, import-export duties, and geopolitical factors significantly affect the market. India’s trade agreements and policies regarding diamond import from African nations and rough diamond exporting countries play a key role in market stability.
Key Companies and Competitive Landscape
The India diamond cutting and polishing industry features a mix of large-scale integrated players and thousands of small and medium enterprises. These firms collectively contribute to maintaining India’s global leadership in volume processing.
Major players are investing heavily in advanced technologies like AI-driven imaging, automated flaw detection, and robotic cutting tools. Additionally, companies are focusing on backward integration—securing rough diamond supply—and forward integration into jewelry design and branding.
Collaborations with training institutes and industry councils help ensure a steady supply of skilled labor. CSR initiatives focusing on employee welfare, women’s employment, and local community support are also increasingly prioritized.
Challenges in the Market
Despite strong fundamentals, the Indian diamond cutting and polishing market faces a few significant challenges:
1. Dependence on Imports
India relies heavily on rough diamond imports. Any disruption in supply, such as geopolitical tensions or trade restrictions, can impact production volumes and prices.
2. Fluctuating Global Demand
Global economic slowdowns, inflation, and shifts in luxury spending patterns can reduce the demand for diamonds, affecting the processing volume and profitability.
3. Labor Shortages
While India has a skilled labor base, retaining young talent in the diamond processing sector is becoming increasingly difficult. Younger generations are showing a declining interest in manual craftsmanship roles.
4. Regulatory Complexity
Compliance with international standards such as the Kimberley Process and evolving ESG requirements demands constant vigilance and adaptation. Small players often struggle with the resource intensity of maintaining compliance.
Outlook and Future Opportunities
Looking ahead, the India diamond cutting and polishing market is expected to continue evolving through a blend of tradition and technology. Government initiatives like the “Make in India” campaign and the establishment of jewelry parks and diamond trading hubs are likely to strengthen domestic production capabilities.
Moreover, the rising popularity of synthetic diamonds presents new growth avenues for exporters and processors looking to diversify their portfolios. With consistent investment in automation, skill development, and sustainable practices, India is well-positioned to maintain its global dominance while responding to shifting market dynamics.
Conclusion
The India diamond cutting & polishing market remains a global leader due to its unmatched processing capabilities, skilled workforce, and willingness to embrace technological innovation. With strategic investment in infrastructure, sustainability, and workforce training, the industry is set to meet future demands both domestically and internationally.
More Trending Latest Reports By Polaris Market Research:
Acrylonitrile Butadiene Styrene Market
Activated Bleaching Earth Market
Advanced Energy Storage Systems Market
Electronics & Consumer Goods Plastics Market
U.S. Steel Merchant and Rebar Market
Restaurant Point-Of-Sale (Pos) Terminals Market
Earphones And Headphones Market
