India’s Diamond Jewelry Exports Witness Sharp Decline, Industry Eyes Domestic Market
GG News Bureau
New Delhi, 29th April. Recent reports reveal a notable downturn in India’s diamond jewelry exports, accompanied by a corresponding decrease in rough diamond imports.
In the fiscal year 2023-24, polished diamond exports experienced a substantial decline of 27.5%, plummeting to $15.97 billion. This decline can be attributed primarily to sanctions imposed on Russian diamonds, which typically contribute 30-35% of India’s diamond supply.
Concentrated mainly in Surat, the industry heavily relies on exports, with an estimated 80%-85% of manufactured diamond jewelry being shipped overseas.
Amidst these challenges, however, lies an opportunity within the domestic market. India’s burgeoning middle and upper classes, characterized by their increasing purchasing power and aspirational outlook, represent a largely untapped market segment that the diamond industry can explore.
Traditionally, Indians have favored gold jewelry as a secure investment option. In FY23-24 alone, India’s gold consumption amounted to approximately 700-750 tonnes, valued at around $55 billion.
Notably, a significant portion of India’s gold jewelry consumption comprises studded pieces, with diamonds constituting 60-70% of the stones used in these designs, indicating a strong domestic demand for jewelry with embedded stones.
Indian millennials, in particular, exhibit a preference for purchasing diamonds from ethnic brands.
The industry can capitalize on this trend by introducing new sub-brands that resonate with the rich cultural themes prevalent in India. Additionally, offering value-oriented products, such as diamonds set in 18kt or 14kt gold, can cater to the burgeoning middle-class segment.
By strategically pivoting towards the domestic market, investing in branding and marketing endeavors, and crafting narratives that resonate with Indian consumers, the diamond industry can unlock the potential of the studded gold jewelry market.
This transformative approach not only mitigates the risks associated with over-reliance on exports but also positions the industry for sustained growth and resilience.
It’s an opportune moment to redefine India’s diamond industry narrative, leveraging its rich heritage, unparalleled craftsmanship, and the enduring appeal of diamonds.
