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The Rise of Lab-Grown Diamonds in India: Market Trends and Predictions

The diamond market in India is undergoing a major revolution. With rising awareness and affordability, the lab-grown diamond industry in India is gaining serious momentum across the luxury and fashion industry. More consumers are adopting lab diamonds, making them a fashion statement. In this blog, we’ll explore the current market trends, provide actionable insights, and wonder: Will lab diamonds replace natural diamonds in India?


Understanding the Lab-Grown Diamond Revolution


Lab-Grown Diamond Market in India?

Lab-grown diamonds are created in controlled settings using 2 methods: HPHT or CVD, exactly mirroring natural diamonds in brilliance, durability, and structure. India has become a leading player in lab-grown diamonds, exporting over 28% of global lab-grown diamonds, with major production hubs in Surat, Mumbai, & Jaipur.


Differences and Similarities with the Natural Diamond Market

While lab-grown diamonds and mined diamonds share identical chemical and physical properties, they differ in:

  • Price: LGDs are 70–80% affordable.

  • Environmental footprint: Lab diamonds emit 90% less carbon.

  • Ethical sourcing: Lab diamonds are free from mining-related conflicts.


Key Reasons for Popularity Among Millennials & Gen Z

Ethical & Sustainable Choice

Ethical sourcing is vital in today’s generation. As we witness a sustainable movement across all industries, the luxury industry also requires an overdue makeover. Mined diamonds are often linked to conflict zones and environmental degradation, whereas LGDs are conflict-free and eco-friendly. India’s push to eliminate diamond seeds import duties and fund research at institutions like IIT Madras displays clear governmental support. The government support is being reflected in both new-age brands and legacy jewellery brands, catering to the new audience. 


Affordability & Better Value for Money

The lab-grown diamond market in India is growing because LGDs offer:

  • Prices up to 70–80% lower than natural diamonds. Solitaires are the new chic choice for engagement rings.  

  • The ability to buy larger, clearer stones within the same budget.

  • A broader appeal for consumers seeking luxury on a budget.


Transparency & Certification

The jewellery industry is all about trust and reliability. Customers demand transparency. LGDs come with IGI and GIA certification, ensuring authenticity. The upcoming GIA descriptive grading system will further improve transparency for LGDs.

Many Indian retailers now highlight lab-grown options online, helping buyers make informed choices. With more transparency in services aligned with the purchase of LGDs, consumers have a wide array of options suitable for their personal choice. 


Shifting Social Trends & Changing Attitudes

India’s youth prefer minimalism, conscious consumerism, and personalization. LGDs allow for:

  • Unique, customizable designs via CAD and 3D printing.

  • Social endorsement: PM Modi’s gift of a 7.5-carat lab-grown diamond to Jill Biden underscores growing mainstream acceptance. Also, the Netflix documentary “Nothing Lasts Forever”.


Technological Innovation & Market Growth

  • Technology like HPHT and CVD has allowed high-quality LGDs to enter the market with zero difference from the mined alternatives.

  • The Indian luxury lab-grown diamond jewellery market is forecasted to grow at 12.8% CAGR, reaching USD 706M by 2030.

  • From USD 300M in 2023 to a projected USD 1.2B by 2033—14.8% CAGR growth.


Addressing Common Misconceptions

Do Lab-Grown Diamonds Look Different from Natural Ones?

No—they share identical optical and structural characteristics. Even professional jewellers require specialized equipment to distinguish the two.


Will Lab-Grown Diamonds Hold Their Value?

Currently, LGDs have lower resale value compared to natural diamonds, especially during oversupply-induced price drops—some reports cite 60% price corrections in 2024. Yet, experts believe growing acceptance and market maturity could stabilize values over time. In addition, the market is not treating lab-grown diamonds as an investment anymore; rather, they’re shifting to fashion statements, not worrying about resale, due to their low prices. 


Are Lab Diamonds Real or Simply Imitations?

They are real diamonds, sharing the same hardness (10 Mohs), brilliance, and chemical makeup as mined diamonds.


The Future of Lab-Grown Diamonds in the Jewellery Industry


Will Lab Diamonds Replace Natural Diamonds in India?

Rising production (India ranks second globally) and government incentives suggest LGDs aren’t here for a hype trend. India carries strong traditional values for gold and rare stones; thus, natural diamonds would always have a place in the market. While many traditional jewellers (such as Titan’s Tanishq) remain cautious due to the cultural significance of natural stones, reports show LGD exports are up 55% annually, capturing 6.2% of polished diamond exports.


How Traditional Jewellers Are Adapting

  • Many luxury brands have added LGD collections. E.g.: Swarovski

  • IGI and GIA certifications build trust.

  • Retailers are now offering hybrid buying options—LGDs alongside mined diamonds—for consumer choice.


Applications Beyond Jewellery

Research institutes like InCent-LGD at IIT Madras are exploring LGDs in tech—such as semiconductors, quantum computing, and thermal management—expanding Indian expertise into high-tech and industrial use cases. Moreover, innovations are leading to other stones being made in labs like emeralds, pink diamonds, etc. 


Conclusion

The lab-grown diamond industry in India is immensely surging, driven by sustainability, affordability, and advancing technology. With strong global demand and government support, LGDs are transitioning from niche to mainstream. Even though natural diamonds wouldn’t be entirely replaced by lab diamonds, the industry would still see a transformative change in luxury fashion and wedding jewellery. 


FAQs


What’s the current size of the lab-grown diamond market in India?

India’s LGD market is estimated at USD 300–350M (2024), set to grow to over USD 1.2B by 2033.


How affordable are lab diamonds compared to mined ones?

They are 70–80% less expensive per carat, making them accessible without compromising quality.


Will lab-grown diamonds completely replace natural diamonds?

While LGDs are gaining market share, natural diamonds remain valued for their rarity and cultural significance. Both will likely coexist in complementary roles.


How can I verify a lab-grown diamond?

Buy IGI or GIA-certified diamonds and check for laser inscriptions. Reputable retailers will always provide documentation and transparency. Moreover, buy from trusted legacy brands, as many new small firms are trying to enter the market with low prices and half-baked promises. 


What is the future of lab-grown diamonds in India?

With infrastructure, government support, and technological innovation, India is positioned to lead in both jewellery-grade and industrial lab-grown diamond applications across the whole world.

 
 
 

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