Historical depth

India's role in the global gem trade extends to antiquity. The Golconda diamond mines, in the Krishna river valley of present-day Telangana and Andhra Pradesh states, were the world's principal diamond source from the early classical period through the discovery of Brazilian fields in the 1720s. The Mughal court, from the sixteenth through the nineteenth centuries, was the largest single consumer of luxury gemstones globally and accumulated coloured-stone inventories that have shaped European royal collections to the present day, principally through Nadir Shah's removal of the Mughal regalia after the 1739 sack of Delhi.

The Indian gemmological tradition codified principles of stone identification, treatment and astrological assignment in the Ratnapariksha texts of the early common-era period, predating the European tradition by approximately a millennium. The Garuda Purana, composed approximately fourth to seventh century CE, describes diamond varieties, sources and properties in terms recognisable to modern gemmology.

Contemporary supply role

India is the world's principal diamond cutting and polishing centre, processing approximately ninety percent of all diamonds by piece count, principally in Surat, Gujarat. The cutting industry employs approximately one million workers and is concentrated in family firms, many of which originated as Marwari or Gujarati Jain trader families with multi-generational diamond histories.

India is also a significant coloured stone producer. Star ruby and star sapphire from Andhra Pradesh, garnet from Rajasthan, emerald from Rajasthan, moonstone from Tamil Nadu, and aquamarine and topaz from Karnataka are notable production sources. Quantitatively, however, Indian production is small relative to its cutting and consumption role.

Consumption and demand

India is the world's second-largest gold-jewellery consumer market by volume after China, and the largest consumer of gold jewellery as a fraction of GDP. Annual gold jewellery consumption is approximately five hundred to seven hundred tons, driven by wedding and festival demand and by gold's role as a household savings vehicle.

The Indian coloured-stone consumer market is substantial, with regional preferences for particular materials: ruby and red spinel in the north, emerald in the west and central regions, sapphire across the country, and pearl in the coastal regions. The astrological assignment system, in which specific stones are prescribed for particular birth charts, remains a meaningful purchase driver for a significant fraction of Indian consumers.

Trade institutions

The Gem and Jewellery Export Promotion Council, established in 1966, is the principal trade body. The Bharat Diamond Bourse in Mumbai, opened in 2010, is the world's largest diamond exchange by floor area. The Hyderabad Pearl Market, the Jaipur emerald and coloured-stone markets, and the Surat diamond cutting cluster are the principal regional centres.