In a significant move to bolster the diamond jewellery market in India, Tanishq, the country’s largest jewellery retailer, has entered into a strategic partnership with global diamond powerhouse De Beers. The collaboration, announced on Wednesday, aims to harness India’s position as the world’s second-largest diamond jewellery market, a title it recently claimed by surpassing China amid its economic slowdown.

India now commands 11% of global diamond demand, edging out China, which holds 10%, while the United States remains the dominant market with 50% of the world’s diamond consumption. Tanishq, which currently derives 30% of its jewellery sales by value from diamonds, is poised to further elevate this figure through the partnership with De Beers.

The alliance will focus on several key areas: consumer education, staff training, and robust marketing initiatives designed to distinguish natural diamonds from their lab-grown counterparts. Additionally, Tanishq plans to strengthen its supply chain with De Beers and enhance its testing mechanisms to ensure the authenticity and traceability of its diamonds. This builds on Tanishq’s existing use of De Beers’ diamond verification technology, which has become a cornerstone of its commitment to quality.

“The opportunity in India for diamonds is massive, given the low penetration of studded jewellery and the rising per capita incomes in the world’s most populous country,” said Ajoy Chawla, CEO of Titan’s Jewellery Division, under which Tanishq operates.

Currently, diamond-studded jewellery represents about 13% of the total jewellery market in India by value. However, this share is rapidly expanding as younger consumers increasingly favor diamond-studded pieces over traditional gold jewellery. The surge in digital-only brands has also contributed to this trend, catering to a growing demand for affordable, stylish diamond jewellery suited for everyday wear.

Industry experts note that organized players like Tanishq have been at the forefront of this transformation, forming strategic partnerships with designers, launching new collections regularly, and investing in advanced manufacturing and testing capabilities. 

Acquisitions have also played a pivotal role in the sector's growth. Tanishq and Kalyan Jewellers, the top two jewellery retailers in India, have expanded their presence by acquiring digital brands like CaratLane and Candere, respectively. These acquisitions have enabled the brands to create a seamless omnichannel presence, blending online convenience with offline experience, and driving substantial sales growth.

Last week, unlisted jewellery retailer Joyalukkas announced plans to launch an online-only jewellery brand by FY26 and expand its diamond jewellery counters across its stores. The company aims to increase its diamond jewellery sales from 19% to 24% over the next four years.

As the diamond jewellery market continues to flourish, industry estimates suggest that India’s online jewellery segment, currently valued at around $1 billion, is set to triple to $3 billion in the coming years, with the diamond category leading this growth. 

The Tanishq-De Beers partnership is expected to play a crucial role in this expansion, offering consumers unparalleled access to high-quality, authentic diamond jewellery and solidifying India’s position as a global leader in the diamond market.