The Indian diamond industry is facing a severe crisis as exports to the United States have nearly halved following the imposition of a steep 50% tariff by the former Trump administration. This stark revelation comes from Al Cook, the CEO of the global diamond giant De Beers Group.
Trade Barrier Cripples a Vital Export Pipeline
Cook, who recently met with India's Commerce Minister Piyush Goyal, explained the gravity of the situation. The US decision to impose 50% tariffs on Indian diamonds has created a major challenge, given the unique structure of the global industry. India is responsible for cutting and polishing about 90% of the world's diamonds, while the US market accounts for roughly 50% of global diamond purchases. This tariff disrupts a critical supply chain linking the two nations.
Providing concrete figures, Cook stated that in 2024, total diamond exports from India stood at approximately $13 billion. Of this massive sum, about 50% was destined for the US market, highlighting the enormous impact of the tariff.
Hope for a Deal Amidst Industry Resilience
Despite the significant downturn, Cook noted there hasn't been a large-scale relocation of the Indian diamond industry to other countries. Stakeholders are holding out hope for a favorable trade agreement between India and the US. "We just need to see the right time, right place and right politics for that deal to happen," Cook remarked.
He offered a glimmer of optimism, adding, "The good news is that the US has announced that once there's a deal, there will be a 0% tariff on natural diamonds. People do expect tariffs to end." The London-based De Beers Group, which owns the Forevermark brand, supplies rough diamonds to Indian partners who then process and export them.
India's Domestic Market Shines Bright
Even as exports struggle, the domestic Indian market presents a powerful counter-narrative. Cook expressed strong confidence in India's position as the world's second-largest market for natural diamond consumption, trailing only the US.
This strength is driven by a growing economy, an expanding middle class with higher disposable incomes, and a cultural affinity for jewellery. Notably, demand for natural diamonds in India grew by 11% last year, allowing it to overtake China. Cook attributed China's slowdown to a declining marriage rate, which has fallen by about 50% over the past decade, crippling sales of diamond engagement rings.
"In the short-term, we see stronger growth in India. It is just one of the most important countries on the earth right now and certainly, one of the most important countries in the diamond industry," Cook asserted. Reflecting this focus, De Beers is localizing offerings for Indian shoppers and recently launched its largest global Forevermark flagship store in Mumbai.
The company is also betting on the trend of more women purchasing diamond jewellery for themselves as everyday wear. With this in mind, Forevermark aims to expand its retail footprint to 25 stores in India by the close of 2026.
