About the Indian Diamond Industry

India entered the world cut and polished diamond market when it commenced exports in the late '60s. In less than three decades, India had emerged as the clear leader in the international polished market.

Over the last five years, India has not only maintained its position as the leading diamond manufacturing centre, it has also increased its share of the market. Today, India has a 60 per cent share in terms of value, 85 per cent in terms of carats and 92 per cent in terms of the number of pieces. More importantly the last five years have also seen the consolidation of a process which began earlier - the move by some Indian companies into the processing of large stones of better quality. Thus India as a diamond manufacturing centre today has skills in producing cut and polished diamonds of virtually every size shape and colour. There has also been a concerted attempt to innovate and develop new cuts.

The last five years have seen an accelerated development on the jewellery front as well, both in terms of quality of the product and the expansion of the industry in terms of sheer size. On the domestic front there has been a proliferation of brands being offered to the Indian consumer. Today the jewellery industry is set to take off on a journey of exponential growth with increasingly open policies, a rapid development of Special Economic Zones in different parts of the country and the opening of new units in the foremost zone SEEPZ in Mumbai.

The gem and jewellery industry has been registering a remarkable growth rate of more than 30 per cent annually on an average for the past several years. For the calendar year 2004, gems and jewellery exports registered a growth of almost 35% . Total gem & jewellery exports rose to US$ 14.68 billion (US$ 10.88 billion, for 2003); exports of cut & polished diamonds stood at US$ 10.34 billion (US$ 8.05 billion -2003); gold jewellery exports touched US$ 3.667 billion (US$ 2.05 billion - 2003).

Under the leadership of The Gem & Jewellery Export Promotion Council, the industry has set itself a target of achieving US$ 20 billion exports by the year 2007.