The Diamond Producers Association (DPA), one of the world's largest diamond miners has launched its operations in India on Thursday. The association said it will spend close to Rs 45 crore ($7 million) next year to promote and educate people more about diamonds.
Reports also suggest that its first advertisement campaign in India – Real is Rare. Real is Diamond – will be rolled out this month.
After the United States, India is the DPA's second country office. The US has the world's largest diamond market with almost 47 percent market share.
"We have decided to make India as our second priority market after the US as India is the natural home of diamonds," DPA's Chief Executive Officer Jean-Marc Lieberherr.
The DPA is an alliance of the largest diamond mining companies in the world, which together represent more than 75 percent of the world's diamond production. Its members include — ALROSA, De Beers, Dominion Diamond, Gem Diamonds, Lucara Diamond, Peter Diamonds and Rio Tinto.
"India, which polishes 85-90 percent of the diamonds in the world, accounts for a mere 7 percent of the global consumption. We believe this presents a huge opportunity for us to build the India market by promoting the integrity and reputation of diamonds and ensuring the sustainability of the industry," Lieberherr added.
The alliance has reached to about 3,000 retailers in a bid to train and educate them about diamonds and the industry. Lieberherr also said that they will gradually expand training across the country.
Diamond industry in India
India has a very small market for diamond trade. The country only accounts for about 7-8 percent of total global diamond consumption. China follows the US with 16 percent diamond consumption.
But despite this, the DPA believes that India has a vast growth potential. At present, India consumes about Rs 150 crores worth cut and polished diamonds.
According to reports, consumer demand for diamond jewellery has lifted globally, with surging retail sentiment in Indian and Chinese markets. India will likely show improvement year-over-year driven by increasing domestic demand.
Earlier this year, Prime Minsiter Narendra Modi also urged the Indian diamond industry to aim at becoming an international trading centre and "preferred destination for manufacturing" rather than only a cutting and polishing hub.
"Our aim is to make India a preferred destination for (diamond) manufacturing. We are already a cutting and polishing hub. My intention is to make India an international diamond trading hub," Modi said, addressing golden jubilee celebration of Gem Jewellery Export Promotion Council in Mumbai.