With prices soaring to record highs this year, Indian customers are shifting to . As a result, diamond sales will likely witness an 18-20 per cent growth this year compared with 2024, said Richa Singh, Managing Director, India and Middle East, Natural Diamond Council (NDC).
“There is a definite shift to diamonds from gold in the sub ₹2 lakh category. There are more first-time buyers of diamonds now. Gen Zs are beginning to buy diamond-studded jewellery. There are more first-time buyers of diamonds now,” said Amarendran Vummidi, Managing Partner, Vummidi Bangaru Jewellers.
“Diamond sales are witnessing double-digit growth in India. It is the second-largest diamond market in the world, making up 11 per cent of the total sales,” said Singh, during a roundtable media interaction.
More 1st time buyers
She said first-time diamond buyers are emerging in Tier-II and Tier-III cities. “We recently had a meeting in Gorakhpur. All jewellery shops had diamonds to offer, and they had amazing catalogues,” said the MD of NDC, India and the Middle-East.
Vummidi said demand for diamonds is picking up in South India. “Demand is much higher in the South than in the North, which has always been conscious about the precious stones. Even in Tamil Nadu’s Tier-II and Tier-III cities such as Coimbatore, Erode, Salem, Tiruchi, Krishnagiri and Dharmapuri, we are seeing first-time buyers,” he said.
Singh said Tamil Nadu, in particular, was seeking the best quality diamonds that are flawless. On the crash in prices, she said it was rough diamond prices that had declined. “These are raw materials and there are lot of steps before the finished product is derived. Diamond prices have been rising 3 per cent year-on-year over the past 35 years,” she said.
Lab-grown diamonds
On the impact of lab-grown diamonds, the NDC official said they constitute only two per cent of natural diamond sales. “Lab-grown diamonds have had no impact on India,” she said.
On the 50 per cent tariffs imposed by the US on India, Singh said it is hardly 20 days after Donald Trump imposed the tariffs, though the situation in the export market is challenging.
“Orders for Christmas have been placed and payments made. So, we have to see what happens in the days to come,” she said. The US market makes up 40-50 per cent of Indian finished diamond exports.
On looking at other markets, Vummidi said it was too early to invest in other countries or set up manufacturing facilities in the Middle East.
9-carat gold
Singh said the NDC has helped the Bureau of Indian Standards (BIS) with terminology guidelines on diamonds. The BIS has come up with standards for grading polished diamonds, and this is displayed on its website. The last date to respond to BIS notice on the website is September 18.
The Centre has order the hallmarking of 9-carat gold from July this year. Traders in the North have begun getting BIS hallmarking for 9-carat gold, and this could help buoy diamond-studded jewels, the NDC official said.
Vummidi said Gen Zs are beginning to buy such lightweight gold for daily use. “The carat is less, so the price is less. In addition, its durability is good. However, it will take time for the people in some parts of the country, especially the South, to get used to it,” he said.
On its part, Vummidi came up with Flora collections of diamonds for women and 90 per cent of it was sold in the first 10 days. “It had French enamelling. We are now set to launch Chettinad collections soon,” he said.