India
India is the diamond industry’s supply house. It imports 95% of the world’s rough production. Over the past five years, India’s average annual net rough imports were $13.65 billion and net polished exports were $19.08 billion. India’s success can be attributed to the unique family leadership culture and the highly entrepreneurial spirit of its estimated 700,000 diamond cutters.
A new generation of capable Indian diamantaires is reinventing the global diamond industry. Their ability to adapt and scale new technology is moving beyond manufacturing to marketing. How India interacts with buyers will define the future of the diamond pipeline and profits. Indian manufacturers using sophisticated digital marketing tactics could shorten the supply chain as they build direct electronic supply relationships with retailers.
Covid-19 has had a great impact on India and therefore the global supply of polished diamonds. Prices are up for many qualities due to shortages. Demand is strong due to US stimulus and Chinese recovery. And rough prices are surging, eliminating future profits.
India’s diamond story is important, complex and fascinating. Read all about it in this September issue of
Rapaport Magazine.
martin@rapaport.comArticle from the Rapaport Magazine - September 2021. To subscribe click here.