The diamonds were recovered from the Indian tourist by Israeli customs officials on Sunday night after noticing the man's clothing was causing him discomfort, Israel Hayom Hebrew-language daily reported.
The seizure was made during a routine inspection at the Jordan river border crossing area, an international border between Israel and Jordan in West Asia, it said.
Customs inspectors said that the man was hiding diamonds and gold estimated to be worth hundreds of thousands of dollars, which he tried smuggling into Israel from Jordan.
During his interrogation, the suspected smuggler confessed he intended to sell the diamonds once in Israel.
Incidentally in Israel, value added tax and import taxes do not apply to diamonds, but the suspect was apparently unaware of this fact. All of the diamonds in his possession were undocumented, despite international conventions requiring such documentation to prevent trade in blood diamonds and money laundering by means of diamonds, the report said.
The case was transferred for further investigation to the Jordan River Crossing narcotics and customs unit.