India’s diamond jewellery market is entering a dynamic phase of growth, driven by strong economic fundamentals and evolving consumer behaviour. According to the De Beers Group’s 2025 India Diamond Acquisition Study (DAS), the natural diamond jewellery (NDJ) market is projected to reach ₹1,50,000 crore by 2030, expanding at a robust pace.
Rising incomes, greater financial independence among women, and changing preferences among younger consumers are emerging as key drivers of growth. Notably, millennials and Generation Z already account for 86% of market value, reflecting a generational shift in demand. The DAS also points to growing adoption beyond metro cities and a rise in self-purchase trends, indicating that natural diamonds are increasingly seen as symbols of personal expression, not just traditional investment or bridal assets.
Diamonds are among the most prized gemstones globally, valued for their exceptional brilliance, strength, and rarity. They are widely used across multiple sectors, including jewellery—such as rings, necklaces, and earrings—particularly in weddings and high-end fashion. Beyond adornment, diamonds play an important role in industrial applications like cutting, drilling, and polishing due to their unmatched hardness, as well as in technology for precision instruments and electronics.
While the global diamond market is evolving with the growing presence of lab-grown alternatives, natural diamonds continue to retain strong emotional and investment appeal.
Consumer preference for natural diamonds in India
Natural diamonds continue to enjoy strong favour among Indian consumers, with recent trends showing that their appeal remains intact despite the increasing presence of lab-grown alternatives. This is largely due to the cultural and emotional significance attached to natural diamonds in India, where they are associated with heritage, investment, and lasting value, particularly in bridal jewellery.
Industry experts note that buyers perceive natural diamonds as rare and authentic, unlike lab-grown stones, which are seen as mass-produced. Although lab-grown diamonds are more affordable, natural diamonds continue to be favoured for their-
- Perceived rarity,
- Stronger emotional and resale value, and
- Importance in weddings and heirloom pieces.
In the Indian market, lab-grown diamonds are typically viewed as fashion accessories rather than true substitutes. Additionally, declining global prices of lab-grown diamonds have raised concerns about their long-term value, further reinforcing the appeal of natural diamonds as a more enduring asset.
India’s natural diamond jewellery market enters high-growth phase
India’s natural diamond jewellery market is poised for significant expansion, with its value projected to reach Rs 1,50,000 crore by 2030, according to De Beers Group’s 2025 India Diamond Acquisition Study (DAS). The report highlights that strong macroeconomic fundamentals, including an anticipated 11% annual growth in GDP and personal disposable income (PDI), are driving this upward trajectory and placing the sector firmly in a high-growth phase. This growth reflects a broader structural transformation within the domestic market.
Natural diamonds are increasingly moving beyond their traditional association with bridal heirlooms and are emerging as a preferred choice for everyday wear. The shift is being fuelled by changing consumer dynamics, particularly the rising financial independence of women and evolving preferences among millennials and Generation Z.
Importantly, demand is no longer confined to metropolitan centres. Tier II and III cities are becoming key growth drivers, supported by rising aspirations, improved access to luxury products, and expanding retail networks.
India’s long-standing relationship with natural diamonds is thus evolving into a more contemporary and expressive form. As disposable incomes rise, consumers are placing greater emphasis on authenticity, rarity, and emotional value. This transformation not only strengthens the domestic market but also reinforces India’s position as a central force in the global diamond industry.
Global market presence and consumer patterns
India has emerged as the second-largest diamond jewellery market globally, accounting for 12% of global demand, up from 10% in 2019, and trailing only the United States at 53%. It has surpassed both China and Japan, each holding 5%. The country’s natural diamond jewellery (NDJ) market is currently valued at ₹785 billion, reflecting steady expansion supported by rising incomes and changing consumer behaviour.
As per the report (2025 De Beers India Diamond Acquisition Study (DAS)), the share of Indian women owning natural diamond jewellery has risen to 15%, compared to 11% in 2022, while the annual acquisition rate has remained steady at 3%. The addressable market includes around 67 million women across SEC A/B segments in Tier 1–5 cities, with an average spend of approximately US$ 1,700 (₹1.4 lakh) per diamond piece.
Looking ahead, the number of households earning above US$ 20,000 annually is projected to grow by 16%, doubling from 32 million in 2025 to 67 million by 2030, which is expected to significantly boost luxury consumption.
The report indicates that demand for natural diamond jewellery is expected to grow at a strong CAGR of 12% between 2024 and 2030. A key driver of this growth is the increasing influence of younger consumers. Generation Z (aged 18–28) contributes 51% of total market value, driven by higher acquisition rates and the highest average spending per piece at ₹1.98 lakh, while Millennials (aged 29–44) account for 35%, together controlling 86% of the market value.
Geographically, while Tier 1 and Tier 2 cities continue to generate over half of the market value, Tier 3–5 cities are gaining importance, indicating deeper market penetration. The affluent SEC A segment dominates consumption, accounting for 66% of total market value.
Consumer behaviour has also evolved significantly over time. Diamonds are no longer reserved for special occasions—52% of acquired jewellery is now worn daily, compared to just 27% earlier, while occasion-only usage has dropped sharply to 10%. Additionally, outside weddings, 64% of diamond jewellery is self-purchased, often to mark personal milestones or for self-indulgence.
The wedding segment remains a major contributor, accounting for 29% of total market value, with 79% driven by self-purchasing brides.
However, affordability continues to be the primary barrier to purchase, cited by 24% of non-buyers, followed by a preference for gold at 19%.
Lab-grown diamonds (LGDs) are gaining traction but remain a complementary segment rather than a substitute. In 2024, LGD jewellery accounted for over 20% of total diamond market value, with an acquisition rate of 1.0. The average price of an LGD piece stands at ₹1.04 lakh, about 26% lower than natural diamonds. LGD demand is concentrated among affluent households (88%) and Tier 1 cities (60%), with Delhi and Mumbai contributing 39% of the market value. Overall, while LGDs are growing, natural diamonds continue to dominate India’s evolving diamond landscape.
India’s global diamond footprint
India’s association with diamonds dates back to ancient times, with evidence suggesting that mining and polishing activities began as early as 500 BCE. It plays a pivotal role in the global diamond industry, accounting for nearly 75% of the world’s polished diamond exports. This dominance is driven by the country’s extensive network of diamond cutting and polishing centres, supported by a highly skilled workforce.
Over the centuries, Indian diamond traders have expanded their reach across global markets via land, sea, and air, building deep expertise and establishing a strong presence in major trading hubs. At present, global diamond trading is largely centred in key hubs such as Dubai and Antwerp, where Indian businesses have built a strong and influential presence.
As per a report by Grand View Research, India held a 7.9% share of the global diamond market in 2024, with the domestic market generating US$ 3,264.2 million in revenue during the year. The report further highlights that India’s diamond market is expected to reach US$ 4,053.3 million by 2030, growing at a compound annual growth rate (CAGR) of 3.7% from 2025 to 2030.
India’s export basket in the diamond sector is largely driven by cut and polished diamonds, with a growing share contributed by lab-grown (synthetic) diamonds. However, during April 2025 to February 2026, exports of cut and polished diamonds declined to US$ 11,321.07 million from US$ 12,135.83 million in the corresponding period of the previous year (Apr-2024 February 2025), registering a year-on-year contraction of 6.71%. Similarly, polished lab-grown diamonds also witnessed a decline, falling to US$ 1,037.48 million from US$ 1,134.81 million, reflecting a sharper drop of 8.58% over the same period.
Conclusion
India’s diamond market is transitioning into a sustained high-growth phase, driven by rising disposable incomes, evolving consumer behaviour, and enduring cultural value attached to natural diamonds. While lab-grown alternatives are expanding, they remain complementary rather than disruptive. The shift toward everyday wear, self-purchasing, and growing demand beyond metros signals market maturation. Coupled with India’s global leadership in diamond processing, these trends position the country not only as a key consumption hub but also as a decisive force shaping the future dynamics of the global diamond industry.
Read more
India Diamond Market Size & Outlook, 2025-2030
FAQ
- Why do Indian consumers prefer natural diamonds over lab-grown diamonds?
Indian consumers favour natural diamonds due to their cultural significance, perceived rarity, and higher emotional and resale value. They are often associated with weddings, heritage, and long-term investment, unlike lab-grown diamonds, which are seen more as fashion accessories. - What is the growth outlook for India’s diamond jewellery market?
India’s natural diamond jewellery market is projected to reach around ₹1,50,000 crore by 2030, driven by rising incomes, increasing urbanisation, and changing consumer preferences. - How are younger consumers influencing the diamond market in India?
Millennials and Generation Z together account for a major share of demand, driving trends such as self-purchase, everyday wear, and preference for modern, lightweight jewellery designs. - What role do smaller cities play in the diamond market’s growth?
Tier II and III cities are emerging as key growth drivers due to rising aspirations, improved access to luxury products, and expanding retail networks beyond metro areas. - How is India positioned in the global diamond industry?
India is a major global hub, processing nearly 75% of the world’s polished diamonds and ranking as the second-largest diamond jewellery market, supported by a strong workforce and established trade networks.
