In a strategic move that could reshape the global diamond supply chain, Russian state-owned miner Alrosa is preparing to establish a state-of-the-art diamond polishing facility in India, with Surat and Jaipur emerging as the top contenders for the project. The company is expected to invest around $50 million in the first phase.

According to company leadership, India is a natural choice for Alrosa’s first major overseas expansion. With the country handling nearly 90% of the world’s diamond cutting and polishing, Alrosa sees India as a critical partner for developing a fully integrated diamond ecosystem- from rough supply to finished luxury jewellery.

The move follows renewed engagement between Russia and India after recent high-level diplomatic discussions. Alrosa aims to go beyond just polishing: the company has plans to collaborate with Indian jewellery manufacturers to launch co-branded luxury collections, create traceable bridal and high-end jewellery lines, and introduce blockchain-based authentication platforms for diamonds.

India’s rapidly expanding consumer base is another major attraction. The domestic jewellery market has seen double-digit growth, and India is now the second-largest diamond jewellery consumer in the world, behind the US. Alrosa believes India's rising middle class will soon become a dominant force in global diamond demand.

The company also highlighted India’s long-term efforts to develop clear regulatory distinctions between natural and synthetic diamonds- something Alrosa views as critical for building trust and transparency in the global market.

With strong economic momentum, skilled craftsmanship, and growing luxury consumption, India is positioning itself as a central hub in the future of the diamond industry- and Alrosa’s planned investment aims to deepen that partnership even further.