Transparency and Standardised Grading Key to Growth of India's Diamond and Jewellery Sector

The global fine jewellery industry is experiencing a shift driven by changing consumer preferences and rising expectations around transparency. According to data from the India Brand Equity Foundation (IBEF), India's gems and jewellery market size stood at ₹7,31,255 crore ($85 billion) in January 2026 and is projected to expand to ₹11,18,390 crore ($130 billion) by 2030. For the diamond industry, this growth presents significant opportunities, but sustaining long-term demand requires confidence in the information underpinning every transaction.

As consumers encounter a wider range of offerings—including natural and laboratory-grown diamonds with distinct origins and production processes—accurate product disclosure is increasingly critical. Transparency functions as a fundamental retail and business requirement, ensuring that consumers understand what they purchase and allowing businesses to substantiate product claims.

Reliable information is essential across the entire diamond value chain. Manufacturers and retailers carry the responsibility of communicating clear product details, while independent gemological institutions provide scientific assessments based on established grading standards. Standardised grading is central to this framework, utilizing the Four Cs—cut, colour, clarity, and carat weight—to describe individual characteristics and reduce commercial ambiguity.

Independent gemological institutions support this infrastructure through technical expertise, verifiable reports, and accreditations such as ISO/IEC 17025, which sets competence requirements for testing and calibration laboratories. Experts note that grading documents assessed characteristics rather than establishing universal market prices or resale values, separating product information from broader market and supply conditions.

Additionally, grading must be distinguished from traceability, which documents a diamond's journey through the supply chain. Combined with origin disclosures, these mechanisms strengthen transparency across production, processing, distribution, and retail, provided records are reliable and practices remain consistent.

These dynamics hold specific relevance for India, which McKinsey & Company estimates cuts and polishes 90 per cent of the world's natural diamonds. Maintaining credible assessment practices and dependable documentation is crucial for individual transactions and the confidence of businesses engaging with the broader supply chain.

Ultimately, consumer trust operates as an economic driver rather than merely a reputational asset. By integrating accurate product disclosures, standardised grading, and independent assessments into daily operations, industry stakeholders can enhance accountability and foster a dependable marketplace.

"As India's gems and jewellery sector scales toward its projected $130 billion valuation by 2030, trust and transparency will serve as core pillars for sustainable business growth. With India processing the vast majority of the world's natural diamonds, maintaining rigorous standards in independent grading and supply chain traceability is no longer optional. Businesses that prioritize accurate product disclosure and verifiable documentation will successfully build long-term consumer confidence and secure a competitive advantage in an evolving global market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes