diamond history: india, where it all began
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Presentation by Ehud Arye Laniado
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India has the world’s longest history when it comes to diamonds. It was in India that diamonds were first found.
A link to the full article can be found on the last slide of the presentation
August 2015
The views expressed here are solely those of the author in his private capacity. None of the information made available here shall constitute in any manner an offer or invitation or promotion to buy or to sell diamonds. No one should act upon any opinion or information in this website (including with respect to diamonds values) without consulting a professional qualified adviser.
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India, where it all began
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Ancient History
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• It is not clear precisely when diamonds were first found along the riverbeds and streams of the Indian subcontinent, however there are references to diamonds that go as far back as the fourth century BC, when Alexander the Great conquered India.
• What began as an early diamond-producing country and trading center has become a global leader of manufacturing and an important consumer market.
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• Golconda diamonds, mined in the in central Indian region of Golconda, are among the most sought-after diamonds in the world.
• As trade developed between India and Europe, diamonds made their way to the royal European courts, and by the 1400s, diamond jewelry and diamonds spun into clothing had become popular items.
• The high demand for Indian diamonds saw the country’s diamond resources practically depleted by the late 1700s or early 1800s.
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The twentieth century: The industry organizes
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• In the 1960s, Indian diamond polishers decided to formally organize the diamond industry in their country.
• They caught the eye of De Beers, and started courting the industry giant for a steady supply of rough diamonds.
• The first sight was granted to a consortium called the Indian Diamond Export Corporation.
• At first, they worked on low color and clarity goods intended for the US market.
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• The Indian industry mainly cut and polished smaller-sized diamonds, weighing 0.20 carats and less.
• It was a humble beginning. In 1966, polished diamond exports from India totaled a mere $17 million.
• However, this modest start, which faced a long road ahead, constituted the foundation of a new world diamond center.
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A new age for diamonds
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• In 1985, large deposits of diamonds were found in Western Australia, and India’s polishers were the best equipped to polish these diamonds, which were mostly of low color and clarity.
• Huge quantities of rough diamonds started pouring in, which required larger workshops. Assisted by growing finance facilities from local banks, these workshops quickly developed into large factories.
• This immense transition included shifting away from the large traditional polishing wheels called “Ghantis,” and adopting modern tools and machinery in their place.
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• The burgeoning industry developed new understandings for how to polish larger stones and higher-value goods.
• Local factories are among the largest and most modern in the world with highly skilled workforces, employing at peak nearly one million workers.
• Over time, these developments turned the city of Surat into the world’s largest diamond manufacturing center.
• Mumbai’s diamond families set up offices in Antwerp and expanded their global footprint.
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The global footprint grows
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• In recent years, many Indian companies have expanded their activities to the growing diamond center of Dubai.
• A third center, also in Mumbai, developed in the free zone SEEPZ. This zone houses polishing facilities, but it is mostly home to jewelry manufacturing.
• The combination of large quantities of rough diamond imports, constantly improving polishing skills, availability of financing and a local chain of supply from rough to jewelry manufacturing, has transformed India into the global diamond power house that it is today.
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• By the 1990s and early 2000s, the near-gem type goods were still being polished mostly in India. In recent decades, India dethroned Israel as the world’s largest diamond exporter.
• In the early 1990s, the Indian economy took a turn towards more free market policies, giving rise to a new middle class that started buying diamond jewelry alongside the traditional gold jewelry.
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• De Beers decided to include the Indian consumer market in its generic marketing campaigns, launching jewelry lines, and thus the Indian diamond industry found an important additional source of income – its own local community.
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The Bharat Diamond Bourse
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• The next stage in the development of the country’s diamond industry was the erection of the Bharat Diamond Bourse (BDB).
• The BDB is the world’s largest diamond exchange: 190,000 square meters spread over eight towers located in a 20 acre enclosed compound. It houses a trading floor, some 2,500 small, mid-size and large diamond companies.
• Today, India polishes 11 of every 12 diamonds, and accounts for an estimated 70% of the world’s diamond exports.
• An estimated 600,000 people work in the industry today.
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Polished diamond exports: $23.2 billion.
Polished imports: $6.94 billion.
Rough imports: $16.8 billion.
Rough exports: $1.42 billion.
Gross trade 2014-2015
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The views expressed here are solely those of the author in his private capacity. None of the information made available here shall constitute in any manner an offer or invitation or promotion to buy or to sell diamonds. No one should act upon any opinion or information in this website (including with respect to diamonds values) without consulting a professional qualified adviser.
August 2015
A full version of the article can be found here:http://www.ehudlaniado.com/home/index.php/news/entry/india-where-it-all-began