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New York, NY—Aagam Sanghavi, director of Sanghavi Exports International, gave an enlightening view of the diamond industry in India, especially Surat, during the Rapaport International Diamond Conference held October 21 in New York. High-end jewelers especially may find increased competition for better goods, while all jewelers will face some increased competition and increased prices for diamonds at all levels. Here are a few key points of interest from his presentation:

—Surat processes 75% of all diamonds in the world. More than 1 million people are employed in its diamond industry, and its per-capita income is more than twice the average for India.

—The United States and Japan still are the primary diamond markets, but China and India have rapidly increased demand.

—Developing markets like India, China, Russia, Brazil, and the Middle East have not developed price-point diamond jewelry markets. They are driving demand for better goods.

—China and India will account for 40% of the world’s diamond jewelry market by 2020, according to estimates from Rio Tinto Mining.

—Rough mining remains below 2008 levels, with supply short in relation to manufacturing capacity. Prices are correlated to availability of finance. At present, prices have soared back to 2008 levels.

—Erosion of the workforce [from market volatility and subsequent plant closings] is making it difficult to produce small goods [in India].

World diamond demand by country. De Beers estimates.

Compound annual growth rate of diamond demand from 2006-present, left, and estimated growth of diamond demand in emerging markets by 2016. Source: De Beers.