<P> India continued to be the world's leading source - and nearly the only source - of diamonds until diamonds were discovered in Brazil in 1726 . At first, Brazilian diamonds were reputed to be inferior, and did not command as high a price as the Indian article . To obtain better prices, Portuguese traders began shipping Brazilian diamonds through Goa, and then to Europe to be sold as genuine Golconda diamonds . Indian diamond mining declined rapidly in the 1700s, due to a combination of exhaustion of known deposits and competition from Brazil . </P> <P> Diamond mining in the Panna region around 1675 AD was initiated during the rule of Chhatrasal, the Bundela ruler. . Diamond mining has continued in Panna region . </P> <P> As of 2017, there was one industrial - scale diamond mine in India, the Majhgawan mine, near the town of Panna, Madhya Pradesh . The deposit is in a kimberlite or lamproite pipe 6.5 ha in area, and yields 10 carats to the ton . Mining is done by an open pit, which was 85 m deep as of 2011 . Exploration drilling has established that the pipe continues down to at least 330 m . The mine is owned by the National Mineral Development Corporation (NMDC), employs 199 people, and has a productive capacity of 84,000 carats per year . The mine began regular production in 1967, and to date, has yielded slightly more than a million carats of diamonds . </P> <P> There are also numerous artisanal - scale mines . In the Panna mining district, the Madhya Pradesh government leases 8x8m plots to individuals, who wash the gravel for diamonds . All diamonds found are required to be handed over to the government diamond office in Panna, which markets the gems, and gives the sales proceeds to the finders, less taxes and 11.5 percent royalty . In 2016, there were officially 952 artisanal mines, which yielded 835 carats of diamonds . However, there is an unknown number of small illegal mines, and an unknown amount of diamonds sold on the black market . </P>

How many diamond mines are there in india