DIAMOND INDUSTRY IN INDIA (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     28th September 2023        
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Context: Recently, the gems and jewelry industry urged its members to halt the import of rough diamonds for a two-month period beginning on October 15 due to sluggish global demand and increasing inventories among domestic players.

India's Diamond Industry

  • India is the world's largest cutting and polishing center for diamonds. It accounts for over 90% of polished diamond manufacturing globally.
  • India contributes 19% of the total diamond exports in the world. (2019).
  • Over 75% of the world's polished diamonds, gems, and jewelry are exported by India.
  • The industry contributes 5% to India's GDP & provides employment to more than 5 million individuals, and it's expected that this figure will rise to 8.23 million by 2022.
  • The govt. has permitted 100% FDI in the sector under the automatic route.


  • Diamond is a rare, naturally occurring mineral composed entirely of carbon.
  • It is the hardest known natural substance. It is also chemically resistant and has the highest thermal conductivity of any natural material.
  • Top natural diamond producers: Russia, Botswana, Canada, Australia, South Africa, and Congo (Zaire).
  • Other important producers: Namibia, Ivory Coast, Sierra Leone, Venezuela, Brazil, and more.
  • The USA leads in making synthetic industrial diamonds.
  • Russia has the world's biggest and richest diamond resources.
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