Indians buying diamonds in droves

Indian diamond market has emerged as the third largest in the world for De Beers, reports Prerna K Mishra.

Indians are buying diamonds in droves. With revenues of $1.2 billion (Rs 5400 crore), the Indian diamond market has emerged as the third largest in the world for the Diamond Trading Corporation (DTC) - the sales and marketing arm of De Beers. The entire Indian market is around Rs 7800 crore.

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While the United States accounts for $8.2 billion of the DTC’s global diamond sales of $18.2, India is already closing in on Japan - the second largest market with sales of $ 1.8 billion. Thanks to the diamond cutters and polishers in Surat, this sector was already the second largest export earner for the country, contributing 2.5 per cent to the GDP. But, the fact that domestic sales are also looking up is good news for the diamond major.

The company has earmarked Rs 50 crore to promote diamonds in India this financial year. With 60 per cent of the sales expected to take place between October and January, most of the bigger promotions will be hitting the market soon.

In India, 4.5 per cent to five per cent of the population buys a diamond for the first time each year. The industry growth is 20 per cent, year on year. Speaking to Hindustan Times, DTC Managing Director Cherie Tandon Saldanha said: “We expect the Indian diamond industryto continue growing at the same rate till 2015. Despite the prices of diamonds appreciating by 15-20 per cent in the last three years, people have shown great confidence in picking up diamonds.”

Email pmishra@hindustantimes.com