Source: IMARC Group | Category: Retail
Report Introduction
According to IMARC Group’s latest report titled "India Diamond Market Size, Share, Trends and Forecast by Product, Application, and Region, 2026-2034", this study offers a granular analysis of the country's pivotal gem and jewelry sector. This research report offers a profound analysis of the industry, encompassing India diamond market growth, size, key trends, and regional insights. The report covers critical market dynamics, including the transformative impact of the Diamond Imprest Authorization Scheme for duty-free imports, the explosive growth of Lab-Grown Diamonds (LGD) as a sustainable alternative, and the aggressive retail expansion of organized jewelry chains into tier-2 cities.
Market At-A-Glance: Key Statistics (2026-2034):
- Current Market Size (2025): USD 3.49 Billion
- Projected Market Size (2034): USD 5.29 Billion
- Growth Rate (CAGR): 4.72%
- Dominant Region: West India (Surat and Mumbai serve as the global hub for diamond processing and trading).
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India Diamond Market Overview
The India diamond market size reached USD 3.49 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 5.29 Billion by 2034, exhibiting a steady growth rate (CAGR) of 4.72% during 2026-2034.
The market is witnessing a structural shift, primarily driven by government initiatives to solidify India's status as the world's diamond polishing hub. The introduction of safe harbour tax rates for foreign mining companies has encouraged direct rough diamond trading, reducing reliance on intermediaries. Domestically, the market is buoyed by the wedding and festival season demand, which remains a cultural cornerstone. However, a significant evolution is the rising acceptance of Lab-Grown Diamonds (LGD), which offer a cost-effective and eco-friendly alternative to natural stones, appealing strongly to the value-conscious millennial demographic. Furthermore, organized retailers are actively penetrating non-metro markets, offering certified and transparently priced diamond jewelry to a growing middle class.
Top Emerging Trends in the India Diamond Market:
- Rising Preference for Lab-Grown and Sustainable Diamonds: Consumers increasingly accept lab-grown diamonds due to affordability, ethical sourcing, and sustainability awareness, especially among younger buyers seeking value-driven and environmentally responsible luxury alternatives.
- Strong Growth of Branded and Certified Diamond Jewellery: Buyers increasingly prefer certified and branded diamond jewellery ensuring authenticity, transparency, quality assurance, and resale confidence across organized retail channels.
- Digitalization of Diamond Trading and Jewellery Retail: Online platforms, virtual try-ons, and digital certification are transforming diamond discovery, customization, and purchasing experiences across urban and tech-savvy consumer segments.
- Increasing Demand for Lightweight and Everyday Diamond Jewellery: Changing fashion preferences are driving demand for minimal, lightweight diamond jewellery suitable for daily wear rather than only occasion-based usage.
- Rising Focus on Design Innovation and Customization: Jewellers are emphasizing contemporary designs, personalization, and modular collections to attract modern consumers seeking unique and expressive diamond jewellery styles.
India Diamond Market Growth Factors (Drivers)
- India’s Global Leadership in Diamond Cutting and Polishing: Strong manufacturing capabilities and skilled workforce continue to support India’s dominance in global diamond processing and export activities.
- Rising Disposable Income and Aspirational Luxury Spending: Growing middle-class incomes and lifestyle aspirations are encouraging higher spending on diamond jewellery across weddings and gifting occasions.
- Strong Export Demand from International Jewellery Markets: Robust demand from the US, Europe, and Middle East is supporting diamond exports and overall market expansion.
- Expansion of Organized Jewellery Retail Networks: Growth of organized jewellery chains and branded stores is improving consumer trust, accessibility, and nationwide market penetration.
- Cultural Importance of Diamonds in Weddings and Celebrations: Diamonds remain integral to Indian weddings and milestone celebrations, ensuring consistent long-term domestic demand.
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Market Segmentation
Analysis by Product:
- Natural (Dominant value share due to investment appeal)
- Synthetic (Fastest growing volume share, driven by affordability)
Analysis by Application:
- Jewelry & Ornaments (Primary revenue driver)
- Industrial (Abrasives and cutting tools)
Regional Insights:
- West India (Global processing hub - Surat/Mumbai)
- South India (High consumption of diamond-studded gold jewelry)
- North India (Strong wedding-driven demand)
- East India
India Diamond Market Recent Developments & News
- January 2025: The government introduced the Diamond Imprest Authorization Scheme, allowing duty-free import of cut and polished diamonds to boost exports and support MSMEs.
- July 2024: The Union Budget introduced safe harbour rates for foreign mining companies, simplifying tax compliance and encouraging direct sales of rough diamonds in India.
- Infrastructure Boost: The Maharashtra State Gems and Jewellery Policy 2025 aims to attract ₹1 Lakh Crore investment, including the mega India Jewellery Park Mumbai project in Navi Mumbai.
Why Buy This Report? (High-Value Insights)
- Granular Segmentation: Detailed analysis of Natural vs. Lab-Grown consumer adoption curves, helping retailers optimize inventory mix.
- Regional Hotspots: In-depth breakdown of demand in South vs. North India, identifying specific design preferences (e.g., closed setting vs. solitaire).
- Future-Ready Trends: Insights into the commercial viability of Diamond Derivatives, highlighting potential financialization of the asset class.
Key Highlights of the Report
- Market Forecast (2026-2034): Quantitative data on market value and stable growth trajectory.
- Competitive Landscape: Comprehensive analysis of mining giants, processing powerhouses, and retail leaders.
- Strategic Analysis: Porter’s Five Forces analysis and value chain assessment.
- Technological Trends: Insights into advancements in CVD and HPHT technologies for synthetic diamonds.
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