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India's Rise in Natural Diamond Consumption Surpasses China, Second Only to the US

India has surpassed China in natural diamond consumption, now ranking second globally after the US. De Beers and Tanishq have joined forces to promote natural diamonds in India, aiming to educate consumers and boost confidence in the gems. Despite fluctuating prices, the industry remains stable with no new mines. With a growing middle class and rising demand, India's diamond market has thrived, reaching $3.5-$4 billion post-pandemic. Collaboration between De Beers and Tanishq signals a promising future for India's diamond industry.



In an exciting development for the diamond industry, India has now taken the reins from China in natural diamond consumption, securing its position as the second-largest market globally, following the United States. Sandrine Conseiller, the CEO of De Beers Brands, shared this uplifting news, marking a significant shift in the market dynamics.

 

This remarkable milestone was celebrated with a strategic partnership between De Beers and Tanishq, a leading brand in the Indian jewelry market. The collaboration aims to promote the beauty and allure of natural diamonds across India, fostering a deeper appreciation among consumers.

 

Addressing concerns about fluctuating diamond prices, Conseiller reassured stakeholders that despite recent dips in rough diamond prices, the long-term outlook remains robust. With no new diamond mines entering the market, prices are anticipated to stabilize, ensuring a sustainable future for the industry.

 

Through a joint investment in consumer education and engagement, De Beers and Tanishq plan to ignite interest and confidence in natural diamonds among Indian buyers. A comprehensive marketing campaign will complement these efforts, amplifying the appeal of these timeless gems.

 

Driven by a buoyant economy, a burgeoning middle class, and a discerning consumer base, India has witnessed a surge in demand for natural diamond jewelry. This surge now accounts for 11% of global demand, propelling India ahead of China in the natural diamond market. Conseiller highlighted the vast potential in India, emphasizing the opportunity to drive further growth and engagement in the sector.

 

While challenges persist in global markets, such as the impact of Covid, property crises, and trade tensions, India's natural diamond market has thrived, reaching $3.5-$4 billion post-pandemic and enjoying an annual growth rate of up to 20%. Ajoy Chawla, CEO of Tanishq, expressed optimism about the expanding diamond market in India, citing the country's low studded jewelry penetration and rising per capita incomes as key drivers of growth.

 

Despite the impressive performance, Chawla noted that there is still immense untapped potential in India's diamond market. With only a fraction of Indians currently purchasing diamonds, there is significant room for expansion and market penetration. Tanishq's diamond business has already made significant contributions to its overall turnover, with plans to further elevate its presence in the coming years.

 

Looking ahead, De Beers and Tanishq are exploring opportunities for collaboration in diamond traceability, supply chain optimization, and leveraging cutting-edge technologies to enhance operational efficiency. This strategic alliance signals a new era of growth and innovation in India's natural diamond industry, setting the stage for continued success and market leadership.

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