Diamonds Come Full Circle: New Rules, Rising Prices, and a Market at the Brink of Transformation

Unknown Apr 02, 2026 2 Views

The diamond industry is at a pivotal moment in 2025, with sweeping regulatory changes, price surges, and shifting consumer trends reshaping the global landscape. As diamonds “come full circle,” both natural and lab-grown gems are experiencing renewed scrutiny and opportunity. &nbs...

Key Highlights:

Mandatory Origin Declarations: Starting April 2025, US customs will require detailed self-certification of a diamond’s mining country, not just a “not from Russia” statement. This move, part of G7 sanctions, aims to curb the flow of Russian-mined diamonds, which account for 30% of global rough supply. The new rules demand rigorous record-keeping across the supply chain, raising compliance costs and operational complexity for exporters, especially those in India’s cutting and polishing hub, Surat.
Market Stabilization and Supply Shifts: After a stormy 2023–2024, industry experts predict greater stability by mid-2025 as supply and demand realign. Leading miners like De Beers and Alrosa have reduced rough diamond sales, helping normalize midstream inventories. However, overall supply is expected to plateau, with annual rough output projected at 105–115 million carats, down from previous highs.
Price Surge for Natural Diamonds: Natural diamond prices have jumped 10% in the past two months, with strong demand in India and a global rebound in luxury spending. Smaller diamonds are leading the rally, with prices for popular sizes up 6% recently. The average price for a good-quality diamond now hovers around ₹5 lakh per carat, and industry leaders expect firm prices throughout 2025.
Lab-Grown Diamonds Double Market Share: Lab-grown diamonds (LGDs) are expected to double their market share by 2025, driven by sustainability and affordability. Prices for LGDs have dropped 20–30% in two years, making them highly attractive to younger, eco-conscious buyers. However, rare and fancy-colored natural diamonds are seeing premium pricing due to their scarcity.
India at the Epicenter: Surat remains the world’s diamond cutting powerhouse, buzzing with renewed activity as demand recovers. Yet, the sector faces wage pressures and uncertainty over new US tariffs on Indian goods, which could disrupt the polished diamond trade.
Regulatory Overhaul: India’s DGFT has rolled out the Diamond Imprest Authorization Scheme, tightening export-import rules and mandating value addition, further professionalizing the sector.

As diamonds come full circle in 2025, the industry is balancing tradition with transformation—navigating compliance, embracing innovation, and riding a wave of renewed consumer confidence.

Source: Times of India, National Jeweler, Economic Times

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