Dr. Sanjay Jivnlal Shah, Chairman of Nine Diamonds
India’s natural diamond industry is at a critical crossroads. A global economic slowdown, challenges in rough diamond supply, increasing competition from lab-grown diamonds, and the rapid adoption of advanced machinery, robotics and artificial intelligence (AI) are creating unprecedented challenges for traditional diamond craftsmanship. Amid these changing dynamics, the most pressing concern is not merely trade or exports, but also the livelihoods of millions of gem artisans and their families who have built India’s global reputation through decades of hard work and specialised skills.
Dr. Sanjay Jivnlal Shah, Chairman of Nine Diamonds, emphasised that while industrial growth, modernisation and technological advancement are essential, they must not come at the cost of artisans’ livelihoods, interests and traditional expertise. He called upon the industry to embrace technology while simultaneously investing in human resources, skill development and employment protection.
Global Slowdown Puts Pressure on Small and Medium-Sized Units
A large number of gem artisans across Surat and other cities in Gujarat, as well as several parts of Maharashtra, depend on diamond cutting and polishing for their livelihoods. The industry is not merely a commercial activity; it is a vital source of employment, a pillar of local economies and an important contributor to India’s industrial craftsmanship.
Global economic uncertainty, cautious consumer spending in key markets, fluctuations in rough diamond supply and prices, and subdued demand for polished diamonds have placed pressure on various segments of the industry. Trade restrictions involving Russia and broader geopolitical developments have also affected the rough diamond trade.
Under these circumstances, small and medium-sized manufacturing units may find it increasingly difficult to manage production costs, working capital requirements, order volumes and profitability. These pressures can directly or indirectly affect artisans’ working hours, earnings and employment stability.
Lab-Grown Diamonds Are Reshaping the Competitive Landscape
Laboratory-grown diamonds are rapidly gaining ground in the marketplace. They share the same fundamental chemical composition and many of the physical properties of natural diamonds, but differ in their origin and production process. Generally available at lower prices than natural diamonds, lab-grown stones have become an attractive option for price-conscious consumers.
This development is creating a new competitive environment for natural diamond manufacturers, traders and exporters. The industry must communicate the distinctive characteristics of natural diamonds—including their natural origin, rarity and traditional value—more effectively to consumers.
At the same time, clear identification, reliable certification, transparent disclosure and consumer awareness must remain priorities. By understanding the distinct market requirements of natural and lab-grown diamonds, businesses can strengthen their competitiveness through quality, design, trust and customer service.
The lab-grown diamond segment also requires trained personnel for cutting, polishing, quality control and technical operations. This creates an opportunity to retrain and equip traditional gem artisans with new skills, potentially opening up additional employment opportunities as production methods evolve.
The Competition is No Longer Just About Markets; It Is Also About Technology
The use of advanced machinery, automation, laser technology, computer-assisted measurement and robotics is increasing across the diamond industry. These technologies can improve production speed, consistency and precision in cutting, polishing, measurement and quality inspection.
However, the same transformation may reduce the need for manual labour in certain traditional operations. As automation expands, particularly in repetitive and standardised tasks, artisans must be prepared to acquire new skills and adapt to emerging job roles.
Rather than resisting technological progress, the industry must ensure that technology is adopted in a manner that serves human interests. Training in machine operation, process monitoring, quality control, digital design, equipment maintenance and modern production methods can help artisans prepare for the changing industry.
The objective should be to increase productivity, improve quality and enhance the value of artisans’ skills—all at the same time.
“Protecting Gem Artisans is Both a Moral Duty and a Social Responsibility” — Dr. Sanjay Jivnlal Shah
Dr. Sanjay Jivnlal Shah, Chairman of Nine Diamonds, said:
“The story of the Ram Setu reminds us that even a small squirrel contributed to the construction of the bridge in its own humble way. Similarly, in the current challenging circumstances facing the diamond industry, every trader, manufacturer, entrepreneur, association and related institution must contribute according to its capacity. No contribution is too small. Collective efforts can help us find solutions to even the most difficult problems.”
He further stated:
“Protecting gem artisans is not merely an industrial necessity; it is our moral duty and social responsibility. Through years of dedication, experience and generations of inherited craftsmanship, these artisans have helped India establish a leading position in global diamond cutting and polishing. If we fail to take appropriate steps to safeguard their skills and livelihoods today, the consequences will extend beyond the industry and affect countless families.”
Dr. Shah stressed that the industry must recognise the long-term value of its human resources alongside short-term considerations of costs and productivity. During difficult times, businesses should make every possible effort to retain skilled artisans, provide retraining and create opportunities for them to work with modern technologies.
Artisans’ Expertise Remains India’s Greatest Strength
India’s global reputation in the diamond industry rests substantially on the precision, experience, trained eye, craftsmanship and commitment to quality of its gem artisans. The ability to cut and polish even small and complex diamonds into high-quality finished stones remains one of the country’s important competitive strengths.
Such expertise cannot be developed overnight. It requires years of training, continuous practice and practical experience. Artisans must therefore be recognised not merely as one component of the production process, but as one of the industry’s most valuable assets.
Modern technology and human expertise need not be competitors; they can complement each other. With appropriate training in advanced equipment, digital processes, quality testing and contemporary design methods, artisans can strengthen their roles and remain relevant in an evolving marketplace.
Government and Industry Associations Must Develop a Time-Bound Action Plan
Given the current challenges facing the diamond industry, the government, industry associations, manufacturers, exporters and traders must work together to develop a coordinated, long-term strategy.
Key priorities should include:
1) Protecting artisans’ livelihoods: Increasing awareness of applicable government schemes, social security provisions and available income-support options for workers facing economic hardship.
2) Training in advanced technology: Developing training programmes and centres focused on machine operation, automation, quality control and digital manufacturing.
3) Supporting small and medium-sized businesses: Exploring appropriate assistance for working capital, credit access and technology upgrades.
4) Ensuring transparency in natural and lab-grown diamonds: Promoting reliable certification, accurate labelling and consumer awareness.
5) Diversifying export markets: Exploring new international markets, strengthening quality standards and highlighting the distinctive strengths of Indian diamond craftsmanship.
6) Reskilling the workforce: Equipping traditionally trained artisans with the technical skills needed to adapt to new technologies and changing production requirements.
These measures would help strengthen the industry’s competitiveness while also supporting the economic stability of the families that depend on it.
India’s Gem and Jewellery Export Figures Highlight the Challenges
The latest reported export and trade figures for the financial year 2025–26 underline the pressures facing the sector.
Total gem and jewellery exports: US$ 27.72 billion
India’s total gem and jewellery exports stood at US$ 27.72 billion in FY 2025–26, registering a decline of 3.32% in dollar terms compared with the previous financial year.
Cut and polished diamonds: US$ 12.16 billion
Exports of cut and polished diamonds amounted to US$ 12.16 billion in FY 2025–26, down 8.52% year-on-year, highlighting continuing pressure on the natural diamond trade.
Polished lab-grown diamonds: US$ 1.13 billion
The value of polished lab-grown diamond exports declined by 10.55% to US$ 1.13 billion in FY 2025–26. However, reported export volumes increased, indicating continued price pressure in the segment.
Rough diamond imports: 106.1 million carats
According to the 2025 annual report of the Kimberley Process, India imported approximately 106.1 million carats of rough diamonds in calendar year 2025, with a declared value of around US$ 11.07 billion. In 2024, imports stood at approximately 114.3 million carats, valued at US$ 12.18 billion. These figures relate to calendar years, not financial years.
Employment: Approximately 5 million people
India’s Ministry of Commerce and Industry has referred in earlier official statements to approximately five million skilled and semi-skilled workers employed across the broader gem and jewellery sector. This figure covers the entire sector and should not be interpreted as the number of natural diamond artisans alone.
Taken together, these figures reinforce the need for a balanced strategy that addresses market conditions, competitiveness, technological transformation and the protection of employment.
The Future Lies in Balancing Technology with Human Skill
The years 2026 and 2027 could prove decisive for India’s diamond industry. Amid global market uncertainty, competition from lab-grown diamonds and rapid technological advancement, the industry must adapt its strategies in a timely manner.
However, the focus of this transformation must extend beyond machinery, output and profitability. Human expertise, employment, social security and the dignity of artisans must receive equal importance.
“Machines can accelerate production, but preserving the skills, experience and human value of artisans is equally important. We must embrace technology without leaving our gem artisans behind,” Dr. Shah said.
The future of Indian diamond craftsmanship lies in achieving the right balance between modern technology and traditional expertise. If the government, industry and society work together to provide artisans with new opportunities, appropriate training and essential support, today’s challenges can be transformed into opportunities for sustainable growth.
Safeguarding the livelihoods of gem artisans means safeguarding the future of millions of families. Protecting India’s diamond craftsmanship is a shared responsibility of every stakeholder in the industry.
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