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Indian Diamond Jewellery Market Is Second-Largest Market Globally: 2025 De Beers India Diamond Acquisition Study

India’s Natural Diamond Jewellery Market Is Currently Valued At Rs 49700 Crore and Is Projected To Reach INR 1,500 Crore By 2030.

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The Indian diamond jewellery market has entered a transformative era, officially overtaking China and Japan to become the second-largest market globally, according to the 2025 De Beers India Diamond Acquisition Study (DAS). Capturing a 12% share of global demand, India’s Natural Diamond Jewellery (NDJ) market is currently valued at Rs 49700 crore and is projected to reach INR 1,500 Crore by 2030. This growth is underpinned by a seismic shift in consumer behaviour, led by a new generation of buyers who view diamonds not as dormant assets, but as essential elements of their daily identity.

The study identifies Generation Z as the undisputed powerhouse of the Indian diamond market. Contrary to global narratives, young Indians are embracing natural diamonds with unprecedented enthusiasm, with Gen Z (aged 18-28) now generating a staggering 51% of the total market value, a 19 % increase since 2022. This demographic records the highest average price paid per piece at INR 198,000, driven by high acquisition rates and a desire for authentic luxury. When combined with Millennials, these two generations consisting of 86% of the Indian diamond jewellery market value, signalling a long-term youth-led expansion that is reshaping the luxury landscape.

A profound cultural shift has also redefined how diamonds are worn in India, marking the end of “locker luxury.” In 2014, 56% of diamond jewellery was reserved for special occasions, while only 27% was worn daily. Today, 52% of acquired diamonds are now worn every day. This transition is closely linked to the rise of the self-purchasing woman; outside of the wedding segment, 64% of natural diamond jewellery is self-purchased to celebrate personal milestones or as an impulse treat. Even within the wedding sector, which accounts for 29% of the market value, a remarkable 79% of the value is contributed by brides purchasing for themselves.

Shweta Harit, Global SVP, De Beers Group, said:

India’s ascent to the position of the world’s second-largest diamond market is a testament to the deep-rooted emotional and cultural connection Indian consumers have with natural diamonds. As global markets evolve, India stands out as a beacon of growth, driven by a generation that values authenticity and rarity.

At De Beers, we see this as a journey in which the timeless artistry of a natural diamond meets the modern, fast-paced aspirations of Indian Gen Z and Millennial consumers. India is now a primary driver of global demand, shaped by a consumer base that is younger, more independent, and more style-conscious than ever before.”

Natural diamonds remain the most desired gift and self-purchase item in India, consistently outperforming gold jewellery, smartphones, and luxury watches. As the addressable market expands to 67 million women across Tier 1 to Tier 5 cities, the future of the Indian diamond industry looks increasingly robust. With high-income households forecast to grow by 16% through 2030, the demand for natural diamonds as both a lifestyle statement and a symbolic investment is set to reach new heights. 

As India cements its place as a global diamond powerhouse, natural diamonds have officially evolved from ‘special occasion’ heirlooms to everyday essentials. This shift reflects a visionary new era where nature’s greatest art meets the bold independence of a generation that no longer saves its brilliance for tomorrow, but chooses to wear it every single day.

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Jewellery Manufacturers Seek Tax Relief As Rising Gold Prices Inflate Inventory Valuations

Higher Gold Prices Sustained Turnover Value, But Jewellery Volumes Declined As Consumers Adjusted To Costlier Purchases.

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Jewellery manufacturers in Coimbatore have submitted a representation to the Government of India seeking a review of the existing methodology for valuation of gold inventory for income tax purposes, citing significant financial pressures arising from the sharp increase in gold prices.

According to industry representatives, the closing stock value of gold held by jewellery manufacturers and retailers is currently determined on the basis of the weighted average cost of inventory available at the end of the financial year. The sector has highlighted that gold prices witnessed an increase of approximately 65 per cent between March 2025 and March 2026, resulting in a substantial rise in the book value of inventory.

Industry stakeholders have stated that while the monetary value of sales turnover may have remained comparable to the previous year due to higher gold prices, the actual quantity of jewellery sold has declined as consumers adjust to elevated price levels. Consequently, manufacturers contend that the appreciation in inventory value is being reflected in taxable income despite the absence of corresponding realised sales and cash flows.

The industry has further represented that maintaining adequate gold inventory is essential for meeting consumer demand for a wide range of designs and product categories. As a result, manufacturers are unable to significantly reduce stock holdings without affecting business operations and market competitiveness.

Particular concern has been expressed by micro and small-scale jewellery manufacturers, who report increased working capital requirements and liquidity constraints arising from taxation linked to inventory appreciation. Industry associations have requested that the Government examine alternative valuation or taxation mechanisms that more accurately reflect realised business income and cash generation.

The representation seeks consideration of suitable policy measures to address the financial impact of inventory value appreciation on jewellery manufacturers while ensuring continued compliance with taxation requirements and supporting the sustainability of the sector. Hence, the government should take separate statement of the gold stock with the manufacturers every year. It should collect advance tax based on the sales.

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