After a prolonged period of subdued demand, the Indian diamond industry is beginning to see early signs of revival—thanks to a gradual rebound in China’s diamond market. Industry leaders believe this positive momentum, though still tentative, could restore confidence and help stabilize the global diamond manufacturing ecosystem.

According to a senior official from the Gem & Jewellery Export Promotion Council (GJEPC), China’s improving consumer sentiment may serve as a catalyst for renewed growth in India’s diamond processing sector, which remains a global hub for cut and polished diamonds.

Valued at an estimated USD 9 billion, China's diamond market has witnessed a significant contraction in recent years, impacted by an economic slowdown and a declining marriage rate. In 2024, the market generated revenue of approximately USD 5.7 billion—a steep decline from previous highs. However, industry analysts forecast a moderate recovery, projecting growth to USD 7.2 billion by 2030.

Over the past two years, Chinese demand for diamonds dropped by nearly 50%, and wholesale diamond prices plummeted close to 40%. These market headwinds have had a direct bearing on India, which contributes to nearly one-third of the global polished diamond trade.

Latest GJEPC data reveals that India’s gem and jewellery exports stood at USD 2.42 billion in February 2025, marking a 23.49% decline year-on-year. The dual impact of weakening demand from both the United States and China has added to the pressure on Indian exporters.

Despite the challenges, industry players remain optimistic. GJEPC Chairman, Mr. Kirit Bhansali, noted that diamond prices have now stabilized and the initial signs of Chinese recovery could indicate a turning point. “India’s robust manufacturing capabilities place us in a strong position to respond swiftly to emerging global demand,” he said.

As the industry navigates this phase of transition, partnerships, proactive trade participation, and market intelligence will be essential to seize upcoming opportunities—especially in key export geographies like China and Hong Kong.