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The acquisition rate of diamonds in India’s middle class has risen fourfold in the last 12 years, which indicates the country quickly developing a diamond consumer market to complement its pre-eminence as a leading policy centre, a leading diamond miner said.
Speaking at the World Diamond Conference, Stephen Lussier, executive vice-president of marketing for The De Beers Group of Companies, said, “The acquisition rate for diamonds in India’s middle class has risen sharply from two per cent in 2002 to nine per cent in 2014. The favourable environment for further diamond consumption growth in India’s number of middle class households is forecast to grow by a compound annual rate of 12 per cent over the next decade.” This was the finding of De Beers’ recent consumer diamond purchasing survey in India, he added.
Currently, India imports approximately 90 per cent of its rough diamond requirement from trading centres such as the European Union, Israel and United Arab Emirates; and only 10 per cent of its rough purchase comes directly from producing countries such as Russia, Australia, Canada and Africa. However, Lussier, who is also CEO of De Beers’ jewellery brand Forevermark, cautioned that increased competition from other luxury products means the industry must capitalise on opportunities in areas such as online marketing and branding is to maximise its potential.
Underlining De Beers’ commitment to India, the company has invested nearly $10 million in a state-of-the-art inscription and grading operation in Surat, which has the initial capacity to inscribe 400,000 diamonds – dramatically improving the service for its Indian-based Forevermark partners. Rio Tinto Diamonds managing director Jean-Marc Lieberherr said “Our partnership with the Indian diamond industry is a 30-year journey that covers everything from diamond manufacturing technology to unique market development initiatives and the first diamond discovery in India in decades.
Rio Tinto has underscored the importance of its strategic partnership in India in driving growth and future opportunities in the global industry. Rio Tinto is currently developing the Bunder diamond project in Madhya Pradesh, which is set to put India among the top 10 diamond producer countries in the world.
“The Bunder project is positive proof of the natural abundance and prospectivity of India and provides the ideal opportunity to showcase a new benchmark for mine development in India. The opportunity to produce diamonds mined, manufactured and marketed in India on a commercial scale is exciting and very much aligned to the ‘Make in India’ campaign.”
The Bunder project, discovered in 2004 and currently awaiting approvals, will generate an estimated 30,000 jobs and huge economic benefits for India.
Lieberherr said Rio Tinto’s Argyle Diamonds mine in Australia would be delivering increased volumes from 2015, which would have a direct impact on the Indian manufacturing sector.
Further downstream Rio Tinto Diamonds is continuing its focus on the retail sector with its flagship Indian marketing initiative, “Nazraana” which promotes affordable diamond jewellery as gifts for all occasions.
The conference was organised by the Gems and Jewellery Export Promotion Council in association with the World Diamond Mark Foundation and attended by Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
India is set to ink a pact with the world’s leading Russian diamond miner Alrosa for direct supply of rough diamonds to India.
