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Al Cook, CEO of De Beers Group, is betting big on India’s diamond story. Not only is the world’s second-largest diamond market poised to double in size by 2030, he says, but it’s also at the
heart of global supply chains — a fact that warrants tariff-free access to major consumer markets like the United States. The CEO is making a strong pitch for tariff-free access for
Indian-cut and polished natural diamonds into the United States. As India cements its position as the second-largest diamond market globally and a dominant player in the global supply chain,
the current tariff regime is misaligned with the ground reality.
“For 2,000 years, India has been the heart, the home of diamonds,” Cook said during a recent press conference in India. “Today, India is the second biggest market in the world for diamonds
and we expect the market here — the natural diamond market — to double within the next five years by 2030.”
The optimism comes even as the global diamond market experiences a cooling period following the post-pandemic boom. But for De Beers, the shift in India is not just about growth in numbers.
It’s a strategic pivot. “It used to be that we would talk about from India and by India. Now we talk about to India and for India,” Cook said, underlining the evolution of India’s domestic
demand and economic standing.
India’s natural diamond demand has seen consistent double-digit growth over the last few years. According to De Beers, demand rose by 12% year-on-year, making India one of the fastest
growing diamond markets globally.
Cook also made a case for policy support that matches this global leadership. He recently met with Minister of Commerce and Industry Piyush Goyal to discuss the inclusion of natural diamonds
in the ongoing US-India trade negotiations.
“I talked to him about our vision that diamonds should flow freely around the world without any restrictions and without any tariffs,” Cook said.
Over 90% of the world’s diamonds are processed in India, particularly in Surat — a city that employs over a million people in the industry. Tariff barriers in key markets like the US,
therefore, have a disproportionate impact on India’s diamond economy.
“I think it's essential that the United States exempts natural diamonds from tariffs,” Cook said. He acknowledged that while the tariffs —introduced by President Trump— aimed to boost
domestic manufacturing, natural diamonds are a clear exception.
“There are no natural diamond mines in America. There are no commercial diamond deposits in America. In fact, diamonds are formed in a rock called kimberlite. And there isn't even any
kimberlite in the United States. So, there are no U.S. mining jobs. There are no U.S. mining benefits that you can get from tariffs.”
Instead, Cook argued, tariffs on natural diamonds effectively act as a consumption tax for American buyers. “They put prices up for Americans. And we know that that's not the aim of the
American government,” he added. Cook is hopeful that natural diamonds will be treated similarly to gold — which is already exempt from tariffs.
Despite strong fundamentals in India, the diamond industry globally has been navigating a period of decline and transition.
“After a rapid period of growth in the diamond price through 2021 and 2022, we've seen some declines in 2023 and 2024. We're now seeing some more stability,” Cook said.
A major development has been the widening price gap between natural diamonds and lab-grown diamonds (LGDs). Lab-grown prices have plummeted by as much as 90% since their peak. “When I was in
Surat, people were offering lab-grown diamonds for less than $60 a carat,” Cook shared. “LGDs are now a cheap and cheerful, fun, pretty commodity.”
This price bifurcation has prompted strategic decisions at De Beers. The company recently shuttered its lab-grown jewellery brand Lightbox, which was focused on the US market.
More importantly, De Beers is focusing on ensuring that consumers can distinguish between LGDs and natural diamonds. To this end, the company has launched ‘DiamondProof’ — a new in-store
device capable of verifying diamond origin within seconds. “It’s the first time we've ever brought a machine… it sits in a retail environment, and you can, in three seconds, tell the
difference between LGD and a natural diamond,” Cook said.
While De Beers is stepping back from lab-grown jewellery, it's doubling down on synthetic diamonds for tech applications via its subsidiary Element Six. Cook described this as one of the
most exciting developments in diamond science.
“Diamonds are the hardest substance on earth, but they can also act as mini chips in 6G technology. We’re working with companies like Bosch, Amazon, and the US government to exploit the
technological properties of diamonds.”
India, aiming for semiconductor self-reliance, could be an ideal partner in this push. “One of the reasons I'm in India today is because our synthetic diamond division, Element Six… is keen
to invest in India and be part of India's leadership position in semiconductors and beyond,” he said.
To match India’s growing appetite for natural diamonds, De Beers is ramping up its marketing and retail footprint. “We are, for the first time in 20 years, launching huge marketing campaigns
in India,” Cook said. The company’s category marketing spend this year will be its highest in a decade.
The centrepiece of this India-focused strategy is the launch of Forevermark stores. The brand will debut in Mumbai and Delhi in a few months, with an ambitious plan to scale to over 100
stores across several cities within five years. “It’s going to be an absolutely beautiful brand selling absolutely beautiful, ethical natural diamonds,” Cook said.
Globally, the natural diamond market is showing early signs of a rebound. “In the United States, diamond demand was flat last year. But in April, independent demand for natural diamond
jewellery was up by 8% year-on-year,” Cook shared.