Speaking with Reuters, Pratihari highlighted India’s potential as the world’s second-largest market for polished diamonds, surpassing China last year. “China has seen a sharp slowdown in the luxury segment, but India is showing strong growth,” Pratihari said during the interview.
India, recognized as the global hub for diamond cutting and polishing, processes around 90% of the world’s diamonds, based on Indian government data. Despite this dominance, the sector faced challenges in 2024 due to waning demand from major markets like the U.S. and China. This decline prompted a stronger focus on India’s burgeoning domestic market.
De Beers, a subsidiary of Anglo American (AAL.L), remains India’s leading supplier of rough diamonds and the world’s top producer by value. Pratihari noted signs of a market rebound in the U.S. and highlighted significant growth in the Middle East. “We expect recovery in the next couple of months,” he said.
The decline in export demand has led Indian diamond processors to reduce their imports of rough diamonds by 22% to $7.9 billion between April and December, according to the Gem and Jewellery Export Promotion Council (GJEPC).
To support the midstream segment — the companies that purchase, cut, and polish rough diamonds before selling them to retailers — De Beers has been adjusting rough diamond prices. This move comes as polished diamond prices have fallen more sharply than rough diamond prices.
“Miners are carefully managing supply to avoid excess rough diamonds in the market, which could further pressure polished prices. Currently, the pricing pressure is concentrated in the midstream, while retail prices remain stable,” Pratihari explained.
Between April and December, India’s cut and polished diamond exports dropped by 8.3% to $9.76 billion compared to the same period in 2023, GJEPC data showed. Despite the challenges, the industry remains optimistic, banking on a steady recovery in international markets and continued growth in India.
