Indian Diamond Exporters Seen Entering Local Jewelry Market

Pressured by dwindling profit margins in diamond exports and new trends in diamond jewelry, Indian polished diamond exporters are expected to enter the rapidly growing domestic diamond jewelry market in large numbers. Indeed, some industry-watchers believe more than 30 diamond firms will move into the market in the next two years alone.

The new players are seen entering the market as the result of the success of brands like Asmi and Nakshatra, while the growing number of shopping malls is also expected to give sales of diamond jewelry a boost. In 2004 alone, more than 10 companies are forecast to enter the diamond jewelry market. These are expected to be both Indian diamond exporters entering the market alone and others creating joint ventures with large international firms.

The move into the jewelry market has been prompted by forecasts of limited growth potential for Indian diamantaires who already dominate the global polished diamond market in general and smaller diamonds in particular. That has led industry leaders to look for further growth through polishing of bigger stones and the manufacture of diamond jewelry.