The modern diamond cutting industry in India began slowly in the late 1950s but did not gain momentum until the mid-1960s. In the 30 years from 1966 to 1996, the industry grew at a remarkable rate: 82-fold by polished weight and 249-fold by polished (wholesale) value. Today, India accounts for about 70% by weight and 35% by (wholesale) value of the diamonds polished annually worldwide (excluding the effects of recent temporary surpluses of Russian rough diamonds in the market), and it has a near-monopoly in smaller (less than 7 pt) stones. Using production, sales, and other statistics, this article reviews the rise of the modern diamond cutting industry in India and its impact on the world diamond trade. India has had a profound effect on this trade because of the enormous quantities of small, low-cost diamonds manufactured there.