Crowning Camilla with the Koh-i-Noor diamond would "bring back painful memories of the colonial past", said India's governing party last night.
According to long established planning for the coronation, the Queen Consort was set to be crowned using regalia including the 105-carat diamond during the Coronation of King Charles III in May next year.
It is not known exactly how much the Koh-i-Noor diamond is worth, but estimates put it at around £120million.
But this may now be cancelled due to "political sensitivities" surrounding the ownership of the diamond, which originated from India before being "gifted" to Great Britain under controversial circumstances.
Prime Minister Narendra Modi 's party in India has now addressed the controversy, saying its use "transports a few Indians back to the days of the British Empire".
A party spokesperson told The Telegraph: "The coronation of Camilla and the use of the crown jewel Koh-i-Noor brings back painful memories of the colonial past.
"Most Indians have very little memory of the oppressive past. Five to six generations of Indians suffered under multiple foreign rules for over five centuries.
"Recent occasions, like Queen Elizabeth II's death, the coronation of the new Queen Camilla and the use of the Koh-i-Noor do transport a few Indians back to the days of the British Empire in India."
The crown is made up of 2,800 diamonds with the front cross holding the famous Koh-i-Noor diamond, one of the largest cut diamonds in the world.
The 105-carat gem, which is held in a detachable platinum mount, may be removed before use in favour of something simpler, such as Queen Victoria’s coronet.
It was made in 1937 for the then Queen Elizabeth, consort of King George VI, using stones already in the royal collection.
The diamond was mounted in the crowns of Queen Alexandra and Queen Mary, and was once again reset for this crown.
It dates back to the Mughal ruler in 1628 and served as a symbol of power until it was acquired by Britain in 1849 and gifted to Queen Victoria in 1855 by 10 year-old Duleep Singh, last emperor of the Sikhs.
Although the diamond was gifted, the gift only came after the mother of the young heir to the Punjabi throne was held prisoner and he was forced to sign it away.
A source earlier told MailOnline: "The original plan was for the Queen Consort to be crowned with the late Queen Mother's crown when her husband acceded to the throne.
"But times have changed and His Majesty The King is acutely sensitive to these issues, as are his advisors.
"There are serious political sensitivities and significant nervousness around them, particularly regarding India."
Speaking on the matter, Foreign Secretary James Cleverly told Sky News: "Ultimately, decisions like that are for the palace.
"The palace is really very good at assessing the public, and indeed the international, mood.
"We have a fantastic relationship with India and the Indian people. It is a decision for the palace and I have no doubt the coronation will be an absolute celebration."
Camilla is set to be crowned alongside her husband, King Charles, in a historical ceremony at Westminster Abbey on Saturday, May 6.
The Palace said the ceremony will be "rooted in longstanding traditions and pageantry" but also "reflect the monarch’s role today and look towards the future".
It is understood the ceremony will include the same core elements of the traditional service, which has retained a similar structure for more than 1,000 years, while also recognising the spirit of our times.