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Informist, Wednesday, Jan. 8, 2025

 

By Sandeep Sinha

 

MUMBAI – India's natural diamond market is poised for a double-digit growth in 2025, according to Paul Rowley, executive vice-president of diamond trading at De Beers Group. Speaking to Informist, Rowley said, "We have seen the formal sector report some very strong numbers. The overall market is likely to grow between 10% and 15% this year, reflecting a very positive trajectory."

 

The domestic diamond market, valued around $8 billion-$8.5 billion, has seen robust demand, particularly after Diwali, and now accounts for 10% of the global diamond market.

 

India's diamond exports, which faced challenges in the past two years due to an oversupply of polished diamonds, are expected to improve in 2025. "The market has now stabilised, and we anticipate manufacturing activity to pick up," Rowley said at the 17th India International Jewellery Show (IIJS Signature 2025) organised by the Gem and Jewellery Export Promotion Council. He emphasised the importance of this recovery for Gujarat, a key hub for the diamond industry, and highlighted the growing export potential driven by the country's manufacturing base.

 

Polished diamond prices have stabilised in recent months after witnessing a dip due to weak demand from China. This stabilisation signals a healthier market ahead. Rowley noted that the US, which represents 55% of the global diamond market, is showing positive signs. "We're seeing encouraging economic data from the US, and the season has been relatively positive. Growth in 2025 looks promising," he added.

 

While the US market experienced sluggish demand in the first half of 2024, it has since bottomed out, and Rowley expects 2025 to be a turnaround year. However, the overall diamond market in 2024 may register a slight decline compared to 2023, likely in the low single digits.

 

In contrast, the Chinese diamond market has stabilised at about half its previous demand levels, a significant drop of nearly 50% from its peak. "China has faced economic challenges post-COVID, but the situation is now consistent. Recycling of stock from China is also finding a balance, which is contributing to improved market dynamics," Rowley explained.

 

He also highlighted De Beers' strategic production cuts as part of efforts to achieve a balance between supply and demand. "This year has been about realignment. Recovery is on the horizon, likely strengthening in the second or third quarter of 2025, paving the way for a more optimistic future for the diamond industry."

 

With stability returning across major markets, including the US, West Asia, and Europe, and signs of recovery in exports and manufacturing, the outlook for India's diamond market and the global industry appears increasingly bright. End

 

Edited by Deepshikha Bhardwaj

 

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