India has moved into second place worldwide in demand for diamond jewelry, overtaking China and trailing only the US. This is stated in an analytical review by consulting firm Kept. Separately, analysts note growing interest in large stones of two carats and above.
According to Kept, demand for large diamonds is growing particularly noticeably in the US and India. Investors increasingly view such stones as an asset for preserving and growing value, against the backdrop of gold prices retreating from record levels. Small diamonds, by contrast, are getting cheaper.
Economic uncertainty is making buyers act more cautiously. The conflict in the Middle East also contributes: it affects sentiment as well as the structure of the industry and logistics. Dealers had to urgently move inventory from Dubai to Antwerp. The disruption of routes increased transport costs and created uncertainty for India’s diamond cutting industry, which depends on raw material supplies.
Israel, one of the major diamond trading centers, has also been hit. Its combined exports of diamonds and polished stones in the first half of 2026 fell to a record low of $2.4 billion. The causes were the geopolitical situation, 10% US tariffs, and a general decline in global demand.
The shift of demand toward India is changing the balance of power in the diamond market. But growing interest in large stones does not offset the overall downturn: logistics disruptions, tariffs, and uncertainty continue to weigh on the industry, while former trading centers are losing ground.
Source: RIA Novosti
Image: Renani Jewels
