Why Diamonds Are Cheap in India

When looking at diamonds in India, the gems that sparkle at a fraction of global rates. Also known as Indian diamond market, it thrives because of the massive Surat, the world’s biggest diamond‑cutting centre base, ultra‑low labour costs, skilled artisans earning far less than their Western counterparts, and favourable import duties, tax structures that keep raw stone prices down. These forces combine so that diamonds cheap in India isn’t a myth but a market reality.

Key Factors Driving Low Diamond Prices

First, Surat’s ecosystem creates a price‑slashing feedback loop: high‑volume cutting, state‑backed infrastructure, and a supply chain that moves stones from mine to market in days, not weeks. That speed cuts storage fees and reduces risk, which translates into lower buyer prices. Second, labour in India costs roughly one‑tenth of what it does in Europe or the U.S., yet the craftsmanship is world‑class; the result is a steeper margin for manufacturers without sacrificing quality. Third, India’s import duty on rough diamonds sits around 5‑7%, compared to 15‑20% in many other countries, meaning the base cost of raw material stays low. Fourth, the domestic demand for gold‑paired jewellery pushes retailers to bundle diamonds with gold at attractive combos, further lowering the effective diamond cost for shoppers. Finally, the rise of synthetic diamonds, produced locally, adds competitive pressure on natural stones, forcing even traditional cutters to shave prices to stay relevant.

The interplay of these elements forms a clear semantic chain: the Indian diamond market encompasses Surat’s cutting hub; Surat requires low‑cost labour; low‑cost labour enables cheaper finished stones; import duties influence raw‑material pricing; and market demand drives retailers to offer value‑packed deals. Readers will find that understanding each link helps spot the best buying moments, whether you’re hunting a wedding ring or an everyday sparkle. Below you’ll discover articles that break down price comparisons with the U.S., reveal how Surat became the diamond capital, and share insider tips on navigating taxes and quality checks—all aimed at turning the “cheap” label into real savings for you.