Diamond polishing of Gujarat is a thrilling #MakeinIndia story. Here’s how the evolution of diamond industry happened

Now here’s the most incredible Make in India story you will ever hear. Around nine out of every 10 diamonds are cut and polished in India. The Indian diamond industry’s midstream sector employs more people than the diamond sector in any other country around the globe, with about 800,000 people employed in highly skilled diamond roles in the country. The Indian diamond industry’s midstream sector is also a key source of export earnings for the national economy, with cut and polished diamond exports representing around $20 billion in value (c.7% of total exports) in 2014.

The highly dynamic consumer market has grown rapidly over the last two decades, fuelled by a fast expanding economy, a widening consumer base and a culture where precious jewellery plays an intrinsic role in social occasions and family traditions. The much talked about middle class is growing rapidly, and the purchasing power of the highest income households is expected to rise at the fastest pace. Diamond jewellery is an ‘aspirational’ product in India and is more desired than other luxury categories. Brands, which already play a key role in the Indian consumer market, are expected to gain further prominence for consumers in the years ahead.

The growth story deconstructed
India’s domestic diamond consumer market has achieved almost uninterrupted growth over the last two decades, with demand for diamond jewellery expanding in 19 of the last 20 years in rupee terms.

In the last decade alone, the market has nearly trebled in size to about INR22,000 crore (INR220 billion)The brief contraction in 2013, caused by the depreciating purchasing power of the rupee and a weakening of the broader Indian economy, reversed in 2014.

US funding serves as a major boost
The International Institute of Diamond Grading & Research (IIDGR), part of The De Beers Group of Companies, has invested USD 15 million in diamond grading sector. Group’s initial investment of US$10 million last year to establish the facility, which has the capacity to process over US$500 million of diamonds every year comes as major inspiration.

The enhanced facility represents a world-leading resource for India’s diamond cutting and polishing sector, providing polished diamond grading services, diamond verification services, as well as melee (small diamond) testing and screening.

Diamond educational hub
De Beers Group has also announced that, via the IIDGR, it will launch its first ever education service to cover the entire diamond pipeline and support further growth in the Indian sector. The service, scheduled to launch in the second quarter of 2017, will be run out of Surat and comprise courses that cover essential subjects for India’s diamond sector, including polished diamond grading, diamond foundation and synthetics.

Evolution happened each year
When Business Insider asked Jonathan Kendall, President, IIDGR to speak on the evolution, his answer was interesting. “If you had asked these 15 years back, my answer would have been completely different.”

He believes, the skilled craftsmanship and good knowledge about the art of diamond polishing have helped Surat to maintain its signature till date.