Jaipur: the world's coloured stone cutting capital
Jaipur processes an estimated 70-80% of the world's coloured gemstone production by volume, a market position built over approximately 400 years. The city's gem district, centred on Johari Bazaar and extending through several adjacent streets in the old walled city, encompasses thousands of cutting and polishing workshops, wholesale trading houses, and export companies. The dominant gem species processed: emeralds (primarily from Colombia, Zambia, and Brazil), rubies and sapphires (from Burma, Sri Lanka, Mozambique, and Tanzania), tourmalines, garnets, quartz varieties, and virtually every other commercial coloured stone (GJEPC; Wise, 2016).
The cutting tradition inherited from Mughal patronage has specific aesthetic characteristics that distinguish Jaipur work: the kundan style (setting stones in pure gold foil for Mughal jewellery), the mughal cut (a modified oval cabochon with a slightly pointed bottom suited to kundan settings), and the briolette (a tear-drop-shaped faceted pendant stone). These traditional forms coexist in Jaipur with modern commercial cutting for the global export market. The same workshops may produce traditional kundan settings for the domestic market and modern rounds and ovals for European and American clients (GJEPC; Wise, 2016).
The wholesale structure: most gem rough enters Jaipur through traders who source from primary markets (Bangkok for Southeast Asian material, Antwerp for rough, Zambia and Tanzania for African production). The rough is cut and polished in Jaipur workshops and sold through wholesale dealers to exporters who service global jewellery markets. The retail market in Johari Bazaar and surrounding streets sells directly to domestic buyers and to international trade visitors (GJEPC).
Surat: where 90% of the world's diamonds are cut
Surat in Gujarat is the world's dominant diamond cutting and polishing centre, processing approximately 90% of the world's diamonds by piece count and approximately 80-85% by value. The Surat diamond industry began expanding significantly in the 1960s when rough diamond trading networks developed between Antwerp and Gujarat, taking advantage of India's lower labour costs for cutting the smaller and more labour-intensive diamonds that Belgian cutters were moving away from. The industry expanded to dominate the global market by the 1990s and today Surat's diamond industry employs approximately 500,000-700,000 workers (Diamond World; GJEPC; De Beers market reports).
Surat cuts diamonds from all major sources: South Africa, Russia (ALROSA), Botswana (Debswana/De Beers), Canada, and Australia. The Mumbai diamond market (primarily in the BKC and Opera House areas) functions as the financial and trading hub for the Surat cutting industry, with Bharat Diamond Bourse in BKC being one of the world's largest diamond exchanges. India's diamond industry contributes approximately USD 25-30 billion annually to export value (GJEPC annual reports).
Mumbai: the gem trading and financial hub
Mumbai (Bombay) functions as India's gem trade financial centre, laboratory hub, and export clearing point. Key gem industry locations in Mumbai: Zaveri Bazaar (the historical gold and gem jewellery retail district, one of the largest in Asia), the BKC/Bandra-Kurla Complex area (Bharat Diamond Bourse and financial services for the gem trade), and the Opera House district (diamond trading). GIA India's main laboratory is in Mumbai, making it the primary certification hub for the domestic market (GJEPC; GIA India).
India's own gem deposits
India has its own gem deposits, though current domestic production is modest compared to the volume of imported rough processed in Jaipur and Surat. The historically significant Indian gem sources:
Golconda, Andhra Pradesh/Telangana: The source of all the world's famous historical diamonds including the Koh-i-Noor, the Hope Diamond's precursor stones, and the Orlov Diamond. The Golconda mines are essentially exhausted; they are historically documented archaeological sites rather than active producers. The "Golconda type" descriptor for Type IIa colourless diamonds still commands a premium at auction for stones with this chemical profile.
Orissa and Madhya Pradesh: Minor diamond production continues, primarily small stones from alluvial and kimberlite sources. The Panna diamond mines in Madhya Pradesh produce small industrial and gem-quality diamonds.
Rajasthan: Garnets (almandine from Rajasthan are significant in the commercial market), emeralds (the Rajasthan emerald deposits at Rajgarh, Bubani, and Gurha areas in Ajmer District produce emerald of moderate quality), and various semiprecious materials. Rajasthan garnet is a significant export item (GJEPC; GIA; Wise, 2016).
Tamil Nadu and Karnataka: Corundum deposits producing commercial ruby and sapphire, though not of the quality of Burmese or Ceylon material. Alexandrite occurrences in Tamil Nadu.
Kashmir (historically): The Kashmir sapphire mines at Sumjam in the Padar area of Jammu and Kashmir produced the world's finest blue sapphire from approximately 1881-1887 (the peak production period after a landslide exposed the primary deposit) through approximately 1925. Current production is intermittent and minimal. Kashmir sapphires from the historical production are the most valuable sapphires in the world and regularly appear at Christie's and Sotheby's Geneva (GIA; Gübelin; Hughes, 2017).
The domestic Navratna market
India's domestic gem market is substantially driven by Jyotish demand. The Navratna system (nine planetary gems) creates sustained demand for specific gem species, particularly ruby (Manikya), blue sapphire (Neelam), yellow sapphire (Pukhraj), and emerald (Panna), that is not primarily aesthetic or investment-driven but ritually motivated. This creates a market structure that does not exist in Western gem markets: a buyer purchasing for Jyotish purposes cares about species purity and quality adequacy more than about origin premium, and may purchase at price points that reflect their budget for the ritual rather than the investment value of the stone.
The Navratna demand creates specific fraud incentives: yellow topaz sold as yellow sapphire (Pukhraj), glass sold as sapphire, synthetic ruby sold as natural ruby, and lead-glass-filled ruby sold as commercial natural ruby, all targeted at buyers who do not know how to verify what they are purchasing. The certification infrastructure (GIA India in Mumbai, GII/GJSCI) exists in part to address this fraud risk (GJEPC; GIA India; Wise, 2016).
GJEPC: the industry body
The Gem and Jewellery Export Promotion Council (GJEPC) is the Indian government-supported industry body for the gem and jewellery trade, established in 1966. GJEPC promotes Indian gem and jewellery exports, organises international trade shows (including the India International Jewellery Show, IIJS, in Mumbai), provides trade statistics, and represents the industry in policy discussions. GJEPC data is the primary source for Indian gem trade statistics: export value, production volumes, and market structure data (GJEPC annual reports; gjepc.org).
India's three-pillar role in global gem trade: Jaipur as the world's coloured stone processing centre (70–80% by volume), Surat/Mumbai as diamond cutting and trading hub (90% of world diamonds by piece count), and the domestic market as the world's largest gem consumer by volume with the unique Navratna-driven demand structure. Source: GJEPC; GIA India; Wise (2016).
4,000 years of gem culture
India's gem tradition documented in the Arthashastra (~300 BCE), the Ratnapariksha literature (first millennium CE), and the Navratna system makes it the world's oldest continuous gemological tradition. The practical consequence of this depth: Indian gem buyers and traders bring assumptions, values, and quality frameworks to the market that are fundamentally different from those of Western buyers. A Jaipur trader who has been handling ruby for twenty years in a family that has been handling ruby for four generations does not evaluate a stone the way a Hong Kong investor does, and neither evaluates it the way a Jyotish-driven retail buyer in Chennai does. All three are Indian gem market participants, but they are operating in different frameworks. Understanding which framework is operative in any given transaction is the first step in navigating the market successfully (GJEPC; Behari, 1991; Arthashastra; Wise, 2016).
Frequently asked questions
Is Jaipur a reliable place to buy gems?
Jaipur has both the most sophisticated gem market in India and significant fraud risk for uninformed buyers. The city's wholesale and export operations are professionally run and internationally integrated. The retail market aimed at tourists and domestic buyers contains everything from genuine investment-grade gems with full certification to glass sold as sapphire, depending entirely on the specific dealer. Buying in Jaipur without gemological knowledge and without verifying purchases through a laboratory is risky. Buying through a reputable established dealer with documented history, asking for GIA or equivalent certification, and having significant purchases independently verified before completing the transaction are the appropriate safeguards. The gem knowledge that makes Jaipur dangerous (everyone can tell a good story) also makes it extraordinary for educated buyers who know what they want and how to verify it.
What is India's gem import duty situation?
India imposes import duties on rough and cut gemstones that have changed periodically. As of 2024-25, rough gemstones for further processing generally attract lower rates than finished cut stones, reflecting the policy priority of maintaining the Jaipur cutting industry's competitive position. Cut coloured stones brought into India for personal use are subject to customs declaration. For current import duty rates, consult the Central Board of Indirect Taxes and Customs (CBIC) tariff schedule, as rates change with Union Budgets. This is not tax advice.
Are Indian emeralds (from Rajasthan) worth buying?
Rajasthan emeralds from the Ajmer District deposits are genuine emeralds, natural beryl coloured by chromium, and are not fraudulent. Their quality, however, is generally significantly below Colombian, Zambian, or Brazilian material in colour saturation and clarity. They are typically pale to moderate green, heavily included, and most require significant oiling. For commercial jewellery purposes at modest prices, Rajasthan emeralds have their market. For Jyotish purposes, the classical quality requirements (vivid colour, good clarity) are difficult to meet with most Rajasthan material. For fine gem or investment purposes, Colombian or Zambian material certified by GIA or AGL is the appropriate choice. A GIA certificate on a Rajasthan emerald confirming natural origin is entirely appropriate and appropriate documentation for any significant purchase.
Sources cited in this article
- GJEPC. Annual reports and export statistics. gjepc.org.
- GIA India. Laboratory services. gia.edu/india.
- Wise, R.W. (2016). Secrets of the Gem Trade (2nd ed.). Brunswick House Press.
- Hughes, R.W. (2017). Ruby and Sapphire: A Gemologist's Guide. RWH Publishing.
- Behari, B. (1991). Gems and Astrology. Sagar Publications, New Delhi.
- GIA Gem Reference Guide. (2006). Gemological Institute of America.
- Kautilya. Arthashastra. (c. 300 BCE).
- De Beers Group. Annual diamond market reports. debeersgroup.com.