With gold prices reaching the ₹1 lakh mark, diamond-studded jewellery, especially one-carat solitaires (priced at ₹2.5-₹3.5 lakh per carat), has become the preferred choice for wedding shoppers, resulting in a 20% year-on-year increase in demand.

Jewellery retailers, including Tanishq and Kalyan Jewellers, are actively promoting diamond jewellery due to higher margins and incentives. Sales teams are being incentivized to convert gold buyers to diamond buyers, especially when gold prices are high.

Diamond jewellery among Indian customers is currently in single digits, or at best, 10-11%. The total size of the Indian jewellery industry is about ₹5.5-₹6.4 lakh crore while the diamond industry is at ₹70,000-₹75,000 crore. And, therefore, certainly we want higher growth. How much higher growth, we have not put a number to it. We have our goals. And there is an expectation that the diamond-studded jewellery market will grow at a faster rate,”  said  Tanishq’s CEO Ajoy Chawla

Prices for polished natural diamonds have remained stable in May, with a slight upward trend for high-quality solitaires. Lower-quality diamonds and smaller goods are experiencing flat or pressured prices, highlighting the premium placed on quality.

“The purchasing power of Indians have increased, and they are now looking at diamonds for wedding purposes. India is witnessing a double-digit growth in diamond demand,” said Amit Pratihari, managing director at De Beers India.

This month, overall prices of polished natural diamonds have remained stable, with a slight upward movement. “There’s no sharp spike like we saw in April, but there’s a tendency for prices to rise gradually. Consumers are showing continued interest in solitaires, and that’s reflected in steady movement at the higher end. On the other hand, smaller goods and lower-quality diamonds are not performing as well. In fact, prices in those categories are quite flat or under pressure. So, it’s clear-good quality diamonds, especially solitaires, are the ones holding value and showing upward momentum,” said Jignesh Mehta, managing director at Mumbai-based Divine Solitaires.

The Indian diamond jewellery market is poised for accelerated growth, fueled by rising gold prices, changing consumer preferences, and aggressive retail strategies. With only a small fraction of Indian consumers currently purchasing diamond jewellery, the segment offers substantial room for expansion. Industry leaders expect the trend towards solitaires and high-quality diamonds to continue, especially during key buying seasons like weddings.