In the global diamond pipeline, there is a statistic that is often repeated with pride, yet rarely analyzed for its economic implication: 9 out of 10 diamonds in the world are cut and polished in India.

It is a dominance unmatched by any other industry. Whether a stone is sold on Fifth Avenue in New York or in a boutique in Hong Kong, there is a 90% probability it wascrafted in Surat or Mumbai. India is the undisputed "Factory of the World" for diamonds.

However, a closer look at the digital supply chain reveals a stark paradox. While India owns the manufacturing, it has almost zero ownership of the digital marketplace.

The Crisis of Data Sovereignty For the last two decades, the global B2B trade has moved online. Yet, the infrastructure hosting this trade—the servers, the algorithms, and the platforms—are predominantly owned by entities based in the United States, Europe, or Israel.

When an Indian manufacturer lists their inventory on these foreign platforms, they are not just paying a subscription fee; they are exporting vital market intelligence. Data on who is buying, what they are paying, and which cuts are trending is harvested outside of India. The value is created here, but the strategic leverage is held elsewhere.

The "Digital Middleman" Tax The traditional physical middleman has simply been replaced by a digital one. Indian manufacturers, despite holding the inventory, often findthemselves disconnected from the final B2B buyer. They are forced to rely on third-party aggregators that sit between the Indian seller and the global retailer, often diluting margins and obscuring transparency.

A Call for Indigenous Infrastructure The next phase of growth for the Indian Gem & Jewellery sector cannot come from cutting more stones; we are already at capacity. The next phase of growth must come from Value Capture.

Industry experts are now arguing that for India to transition from a "processing hub" to a "trading superpower," it must build its own digital pipelines. We need a direct digital bridge that connects the diamond bourses of Bharat directly to retailers worldwide, governed by Indian standards and protecting Indian interests.

The Role of Industry Collaboration This is not a task for a single company, but a mandate for the entire ecosystem. It requires the technological sector to collaborate with apex bodies like the GJEPC and the Bharat Diamond Bourse to digitize the MSME sector.

If we can empower the thousands of mid-sized manufacturers in Gujarat and Maharashtra with the tools to export directly—bypassing foreign digital aggregators—we don't just increase their profit margins; we fundamentally alter the balance of power in the global diamond trade.

India has proved it can make the world's best diamonds. The question now is: Are we ready to build the world's best marketplace to sell them?