India Becomes World's Second-Largest Diamond Jewellery Market; Demand to Reach ₹1.52 Lakh Crore by 2030

Recently, several branded jewelry retailers witnessed significant growth in the diamond jewelry category during Akshaya Tritiya sales. P.N. Gadgil reported a 61 percent year-on-year increase in its diamond segment. Meanwhile, Malabar Gold & Diamonds also saw a surge in sales during Akshaya Tritiya, with a 45 percent rise in studded jewelry.

Chetan Thadeshwar, Chairman and Managing Director of Mumbai-based Shringar House of Mangalsutra Ltd., notes that the sharp rise in gold prices over the past two years has significantly impacted jewelry purchasing patterns across various customer segments. While gold retains its traditional significance, consumers are now more budget-conscious and are seeking designs that offer greater value without compromising on aesthetics or quality. Consequently, there is a growing demand for lightweight jewelry-particularly in categories like mangalsutras, chains, and everyday wear-where consumers can continue purchasing gold despite higher prices. Instead of deferring purchases entirely, many buyers are opting for lower-weight, stylish pieces that align with their spending capacity. We are also observing rising demand for lower-karat gold jewelry, especially among younger customers who seek a balance between affordability, style, and suitability for daily wear.

Industry experts state that after a three-year period of price stagnation, the luster of natural diamonds has returned. Natural diamond prices have surged by 5 to 8 percent year-on-year due to supply constraints from major miners and rising investor interest. Prices for solitaire diamonds have risen by 5–8 percent annually, with a one-carat natural diamond selling for approximately ₹1.85 lakh; conversely, smaller diamonds face significant price pressure due to competition from lab-grown diamonds.

Colin Shah, Managing Director of Kama Jewelry, stated that solitaire diamonds are increasingly viewed as valuable assets, with younger generations-such as Gen Z and Millennials-driving demand. Their rarity gives them both aspirational value and investment potential. India plays a pivotal role in this sector, accounting for 12 percent of the global diamond demand by value. Experts note that pink diamonds have become extinct, and diamonds from the Golconda region are increasingly scarce; diamond discoveries have dwindled significantly over the past two decades. If demand in India rises by 25 percent, diamond supplies could face depletion.