India increased its dominance in the cutting and polishing sector in 2017 due to relatively low costs that gave it a competitive advantage over China, according to Rapaport.
The Indian diamond-manufacturing industry grew 11% in 2017, leaving it with more than 90% of the market.
India’s manufacturing sector has benefited from cheaper labour, improvements in workers’ skills, advances in technology, and a favourable regulatory environment, that also helped India increase its production of large stones.
Costs in China are also low by global standards, but are still higher than in India.
Polishing in the US, Belgium and Israel declined 6% due to high costs and an ageing workforce. Africa failed to gain significant market share due to low productivity and relatively high costs.