Leadership in the Indian Diamond Industry: A Conversation with Mr. Mehul Shah

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I had the opportunity to sit down with Mr. Mehul Shah, one of the most influential figures in the Indian diamond industry. Mr. Shah currently holds several key positions simultaneously: CMD of the Star Brillian

Group Vice President of the Bharat (BDB)

Chairman of the Gemological Institute of India (GII)

Proprietor of Shah Farms

When asked how he balances these roles, his answer was simple but powerful: diplomacy. Serving both industry institutions and private companies requires decisions that are transparent, fair, and beyond dispute. Even the slightest perception of bias can damage credibility, and in a trade built on trust, credibility is everything. He explained that leadership at this scale demands constant prioritization. Decisions are not made in hours or even days, but minute by minute. Each issue is weighed by its urgency and its importance, with the most critical matters handled first. This mindset, he said, is what allows large organizations to function smoothly even under pressure.

What struck me most was how he defined leadership. Rather than speaking about authority, he spoke about responsibility. He described leadership as a staircase, where each step represents the people you are meant to protect and empower. Honesty, he emphasized, is the foundation of any large trade organization, followed closely by diplomacy and commitment to one’s team. Leadership, in his view, is never a solitary role- it is built on strong teams who feel supported and respected.

As our conversation continued, he shared some of the real challenges that come with governing a global diamond exchange. He recalled the Mumbai floods of 2006, when basements were filled with water and operations were threatened. The crisis was managed through foresight, including a seventy-lakh-liter water storage system and coordinated emergency response. There were also periods of heightened security threats, utility shortages, and major trade disruptions caused by tariff changes, the 2008 recession, and the COVID-19 pandemic. During these times, he made it a point to be physically present on the trading floor, personally engaging with staff and security teams to maintain morale and confidence.

When we shifted to market dynamics, Mr. Shah offered a clear-eyed view of the diamond industry’s position in the global economy. Over ninety percent of diamonds cut in India are exported, with nearly half going to the United States. Yet diamonds remain a luxury, not a necessity. In uncertain times, consumer spending follows a predictable order- food, clothing, education, and only then luxury goods like diamonds. This is why geopolitical tension or economic recessions cause demand to fall sharply. He spoke about lab-grown diamonds not as a threat, but as a complementary segment serving a different consumer base. At the same time, large natural diamonds continue to hold prestige, much like luxury watches. Consumer psychology still plays a major role in demand, particularly size bias and cultural traditions. In India and much of Asia, gold and diamonds are integral to weddings, while in the United States, engagement rings almost universally feature a diamond. These deeply embedded customs continue to sustain the industry.

As Chairman of GII, Mr. Shah was firm about the importance of quality and credibility. GII invests heavily in in-house research, dedicated scientists, and advanced equipment- an approach that remains rare in India. Through international collaborations with institutions like DANAT in Bahrain and GIA in the United States, GII ensures its standards remain globally competitive. Compromising on quality, he made clear, is not an option.

We also addressed the less visible side of the trade: fraud and misgrading. The absence of universal grading standards makes expertise essential, and buyers must ultimately rely on their own judgment. To combat malpractice, strict disciplinary measures are in place, including arbitration powers, legal action, and penalties that can reach up to one hundred crore rupees. Protecting the integrity of the industry, he believes, requires both fairness and firmness.

Toward the end of the interview, I asked what advice he would give to students and young professionals. His response extended far beyond diamonds. He encouraged students to see themselves as businesspeople rather than just merchants, to avoid limiting ambition to a single sector, and to build strong technical knowledge through education. Understanding balance sheets, promoters, and market fundamentals is essential before making any investment decisions. Most importantly, he emphasized lifelong learning- every conversation, no matter how ordinary, can be a source of insight.

Leaving the interview, I was struck by how much leadership in the diamond industry resembles leadership anywhere else. At its core, it is about trust, discipline, protection, and the courage to act decisively when it matters. Mr. Mehul Shah’s perspective revealed that behind every polished stone lies a complex system held together not just by markets and machines, but by people who take responsibility seriously.