De Beers, the largest diamond seller is confident of its prospects in India even as financial institutions like World Bank had flagged that India would go into a middle-income trap, said Al Cook, Global Chief Executive Officer of De Beers.
“You’re absolutely right that various multilateral banks have highlighted the the middle income trap. But I think that actually what we see in India is an incredible confidence continuing to grow and a middle class of Indians rising and the opportunity for the diamond industry and retailers in India is the best on planet Earth. I think that wise. political leadership and an incredibly entrepreneurial business driven culture is a combination that is the envy of planet Earth,” Mr.Cook said answering a query from The Hindu.
World Bank in its report titled “The Middle Income Trap” in 2024, it flagged that when countries reach a per capita GDP of $8,000 they hit a middle income trap. Since 1990, just 34 countries have escaped the trap, said World Bank in its statement. The current per capita GDP of India is about $2,800 according to World Bank data. A stagnant real wages in the past decade also show that the next generation may not be as prosperous as the one earlier.
Speaking on the effects of U.S. tariffs on the diamond business, Mr. Cook said that the tariffs would do no good to the U.S. other than adding a “consumption tax” for the U.S. consumers as the country has no diamond mining or processing that would significantly thrive from a tariff.
He reiterated the announcement that De Beers would close down the lab grown diamond business and go all natural diamond Mr.Cook also said that De Beers was looking promotional campaigns in India and stores in India targeting more of premium segment than luxury segment. He expressed confidence in Indian market natural diamond, although lab grown diamond prices had dropped by 90%.
Published – May 22, 2025 10:17 pm IST
