Jewellery in Indian homes is generally considered an asset but Millennials and Gen Z buyers are asking about certification and wearability, not resale value…
The Indian diamond jewellery industry is undergoing a quiet but seismic shift. For centuries, the diamond trade defined luxury through manufactured scarcity—anchored by steep mining costs, natural rarity, and decadal marketing. The emergence of lab-grown diamonds (LGDs) has fundamentally dismantled that premise. Lab-grown stones do not merely challenge the narrative of geological rarity; they offer consumers optically, physically, and chemically identical gems at a fraction of the price.
The trade has reached an undeniable inflection point. For the first time in India’s diamond processing history, export volumes have flipped. In FY 2025–26, polished lab-grown diamond exports out of hubs like Surat and Mumbai hit 18.8 million carats, eclipsing polished natural diamond exports of 16.0 million carats.
The data confirms that treating LGDs as mere ‘fake diamonds’ is an obsolete lens for evaluating Indian jewellery. This disruption isn’t confined to export units; it is actively transforming Indian high streets, where a one-carat lab-grown stone now retails for a fourth to a fifth of its natural equivalent—permanently rewriting who gets to own a diamond.
Market Size
According to a Vantage Market Research report, the Indian domestic LGD market size reached ~$2.8 Billion in 2025 and is projected to expand to $11.6 Billion by 2035 (CAGR of ~15.4%). Venture capital has followed: over $14 million poured into Indian LGD startups in the first quarter of 2025 alone, a 50% jump over all of 2024 combined.
Major jewellery players, whether D2C or traditional retail, are fledgling into the lab-grown diamond segment. Major players in this segment include Titan (beYon), Heer by GIVA, Aukera, Limelight Labgrown Diamonds, Solitaire, Lukson, Firefly Diamonds.
This is where India’s story gets unusual. India is not just a consumer market for lab-grown diamonds — it is the world’s dominant processing and export hub. Approximately 90% of the world’s diamonds, both natural and lab-grown, are cut and polished in India, overwhelmingly concentrated in Surat, Gujarat. That same infrastructure has now been repurposed for LGD manufacturing at scale. CVD reactor counts in Surat have expanded into the thousands, and the number of LGD manufacturing units in the city grew from 800 to 2,000 — a 150% increase in just a few years.
India accounted for 28.6% of global LGD exports in 2023, and total LGD export value grew from $636 million in FY21 to $1.4 billion in FY24. LGD exports are reportedly nearly doubling year on year.
What’s Driving this Adoption?
Price is the primary lever. A 1-carat lab-grown diamond in India costs approximately Rs 25,000–70,000 depending on quality, versus Rs 1,80,000–3,00,000 for a comparable natural stone. That is a 4–5X price difference that structurally expands the addressable consumer base. But what’s driving the demand for lab grown diamonds isn’t price alone. It’s a generational rewrite of what a diamond is for. Traditionally, jewellery in Indian homes has been reserved for special occasions, including weddings, festivities, or gifting. Jewellery was generally considered an asset but Millennial and Gen Z buyers are asking about certification and wearability, not resale value.
The question has shifted from ‘is this an investment?’ to ‘how often can I wear this?’
Pooja Madhavan, MD & Founder, Limelight Lab Grown Diamonds says that the category has moved from awareness to consideration. She notes, “Consumers today are more informed, digitally connected, and value-conscious. They understand that lab grown diamonds are chemically, physically, and optically identical to mined diamonds, while offering significantly better value. This allows consumers to choose larger, better-quality diamonds or invest in multiple pieces without compromising on aspiration.”
Ricky Vasandani, CEO & Co-founder, Solitario adds that the sudden spike is fueled by a shifting consumer mindset toward ‘affordable luxury.’ “Modern Indian consumers want to accessorize better and own statement pieces without the heavy financial burden. Lab-grown diamonds (LGDs) perfectly bridge this gap, offering identical brilliance, diverse styles, and a conscious luxury choice at a far more accessible price point,” he says.
“Millennials currently form the largest customer segment, particularly for engagement rings, self-purchase, and gifting,” says Anand Lukhi, Co-founder & CEO, Lukson while adding, “However, Gen Z is emerging as the fastest-growing segment due to their strong preference for conscious consumption, design-led products, and value-driven luxury. We are also seeing increasing adoption among traditional jewellery buyers who are becoming more familiar with the category.”
Sunny Kumar Singh, Founder & CEO, DAIMANTE says that both Gen Z and Millennials are design-driven, digitally informed, and less influenced by traditional notions of rarity, making them the drivers of this adoption.
Are LGD REAL?
A lab-grown diamond is a real diamond — not a simulant like cubic zirconia or moissanite. It has the same carbon crystal structure, the same hardness (10 on the Mohs scale), the same optical brilliance, and the same chemical composition as a mined diamond. It is produced in a controlled laboratory environment using one of two processes: CVD (Chemical Vapour Deposition), which deposits carbon gas onto a seed crystal layer by layer inside a reactor chamber, or HPHT (High Pressure High Temperature), which mimics the geological conditions of the Earth’s mantle. CVD currently dominates, accounting for around 58.7% of production in India. The stones are graded and certified by the same bodies that certify mined diamonds: primarily IGI (International Gemological Institute) and GIA (Gemological Institute of America).
Additionally, since January 2026, India’s Bureau of Indian Standards has enforced IS 19469:2025, which legally requires retailers to label these stones as ‘laboratory-grown diamonds’ and bars vague terms like ‘cultured’ or ‘earth-friendly diamond.’ The rule exists precisely because confusion about what an LGD actually is remains the category’s biggest hurdle.
Pooja Madhavan says, “Lab grown diamonds offer the same brilliance, exceptional quality, and a more sustainable alternative, while making diamond ownership more accessible through better value. Consumer education remains critical to dispelling these myths and helping people make informed purchasing decisions.”
Ricky Vasandani also points out that consumers frequently confuse LGDs with simulants like American Diamonds (cubic zirconia) or Moissanite. “The only true difference between buying lab-grown and natural diamonds is a consumer’s state of mind,” he explains.
Retail Strategy: Shelf Space, Staff Training, and Selling the Story
Retailers describe a deliberate shift away from treating lab-grown as a discount alternative sitting beside natural stones. Anand Lukhi says that the category gets the top billing at Lukson. “At Lukson, lab-grown diamonds are the core category and receive prime visibility across our stores. Merchandising focuses on education, certification, design, and value comparison. Rather than positioning them as alternatives, we present them as premium diamond jewellery designed for modern consumers.”
Ricky Vasandani notes LGDs have crossed into mainstream retail real estate: “LGDs are absolutely getting prime shelf space. As the anchor of the affordable luxury segment, they make fine jewelry accessible to a broader audience. This retail shift is highly visible as LGD jewelry increasingly commands premium positioning on the luxury shelves of major department stores like Shoppers Stop and curated retail spaces like Broadway.”
Sunny Kumar Singh adds that, “This category performs best when it has its own identity and storytelling.”
On staff training, the emphasis across the board is education over hard selling. Anand Lukhi says, “Our teams are trained to explain the science behind lab-grown diamonds, their certification, grading standards, value proposition, and sustainability aspects. We ensure customers receive factual, transparent information so they can make informed decisions with confidence.”
Ricky Vasandani frames it as selling an experience: “Staff are being trained to sell an experience rather than just a stone. The focus is on selling aspirational luxury at an affordable cost, ensuring that clients buying LGDs receive the exact same high-end, personalized in-store treatment traditionally reserved for mined diamond buyers.”
After-sales services such as cleaning, maintenance, resizing, and support remain similar to traditional diamond jewellery across all brands.
One-time Curiosity Buy Vs. Repeat Purchase
“We are definitely seeing repeat purchases,” says Pooja Madhavan. She says that many customers begin with an entry-level purchase to understand the category and later return for larger statement pieces, occasion wear, or gifting. “As confidence in the category grows, repeat purchase behaviour is becoming increasingly common,” she emphasizes.
According to Anand Lukhi, the category has moved beyond curiosity. He says: “We are seeing increasing repeat purchases across gifting, anniversary jewellery, everyday wear collections, and milestone celebrations. Once customers experience the quality and value proposition, they often return for additional purchases and refer others within their network.”
Ricky Vasandani of Solitario says that this repeat purchase behavior is seen especially among women. “Because the entry price is accessible, diamonds are no longer a once-in-a-lifetime investment; women are returning frequently to build out their personal collections,” he explains.
Pricing: Why the Stone is Cheap But the Jewellery Isn’t
A one-carat rough LGD stone reportedly traded at around $5,000 in 2020 and trades closer to $500 today. The obvious question is why retail prices haven’t collapsed at the same rate.
“Consumers are not simply paying for the stone,” says Pooja further explaining, “Retail pricing reflects design innovation, craftsmanship, precious metals, certification, retail infrastructure, brand trust, customer service, and overall shopping experience. As with any luxury product, value extends beyond the raw material itself.”
“The price of any jewellery piece varies depending on the design and diamond size. In many jewellery pieces, especially intricate or bridal designs, the gold and craftsmanship contribute significantly to the final price. The balance between stone value and setting value differs across categories and collections,” she further explains.
On the setting vs. stone ratio, Ricky Vasandani says, “The price distribution is heavily skewed toward the craftsmanship, metal, and design layout, with the setting-to-stone ratio sitting at approximately 1:12.”
He adds that retail prices are expected to hold steady rather than drop significantly further. “As technology scales, the focus will shift from lowering prices to drastically improving stone quality, clarity, and the complexity of jewelry designs.”
Can Lab-Grown Diamonds Carry India’s Emotional Weightage?
Jewellery in India is deeply tied to occasions, legacy, and gifting. Can lab-grown diamonds carry that emotional weight?
Pooja Madhavan argues that the emotional value of jewellery comes from the occasion, the sentiment behind the gift, and the memories attached to it rather than the geography of where the diamond was formed. “We are seeing lab grown diamonds increasingly being chosen for engagements, weddings, anniversaries, gifting, and milestone celebrations,” she says.
“Historically, diamonds were gate-kept by price, reserved only for milestones like weddings. LGDs democratize this emotion, allowing consumers to gift diamond jewelry for smaller, highly meaningful life moments—birthdays, promotions, or self-rewards,” says Ricky Vasandani.
“Brands are successfully building cultural legitimacy by blending heritage with modern storytelling. They don’t compromise on design; instead, they craft intricate, heavy heritage and bridal layouts that look indistinguishable from legacy jewelry. By pairing this high-end design language with rock-solid IGI certification and marketing narratives that celebrate ‘smart, independent choices,’ brands are transforming LGDs from a tech novelty into a legitimate modern heirloom,” he emphasises.
Coexistence, Not Displacement
Though lab-grown diamonds have permanently altered India’s jewellery market, they are unlikely to displace the natural diamond industry. The two segments serve distinct purposes, and it is this differentiation that will allow both to thrive. Lab-grown stones dominate the affordability and everyday fashion jewellery space, offered at a fraction of the cost. Natural diamonds, meanwhile, retain their luxury status—anchored in rarity, tradition, and emotional significance.
Anand Lukhi says, “We believe both categories will coexist. Natural diamonds will continue to appeal to certain consumers for their rarity and legacy, while lab-grown diamonds will attract buyers seeking value, size, quality, and sustainability. Similar to many luxury categories, consumers will choose based on personal preference and occasion rather than viewing the two categories as mutually exclusive.”
Ricky Vasandani predicts a full segmentation by budget and psychology: “Natural and LGDs will absolutely coexist in India; one will not displace the other. Mined diamonds will increasingly shift into the ultra-luxury, high-net-worth tier, positioned strictly as a rare asset, an investment piece, and an elite status symbol.”
He adds, “As long as that elite aspiration for natural diamonds exists, the lab-grown market will actually thrive. LGDs serve as the perfect entry point for the aspirational middle and upper-middle class, capturing the daily wear, fashion, and accessible luxury segments. The two markets cater to entirely different consumer budgets and psychological needs, allowing both to grow parallel to one another.”
Where the Lab-Grown Diamond Category is Heading
Tier-2 and 3 cities expansion is the near-term growth story. West India leads regional growth projections at 16.8% CAGR. Brands, both new and old players, are aggressively building store networks beyond the four metros. Organised retail legitimisation will accelerate adoption. Titan’s entry through beYon is the clearest signal. Industry observers at EY and PwC have described the shift as structural rather than cyclical. Large, trusted retail names bring consumer confidence that D2C brands take years to build.
India’s global share of LGDs is projected to rise from 12% in 2024 to 16% by 2029, per Redseer. India’s domestic adoption, still below 5%, has enormous headroom relative to western markets. The manufacturing trajectory points toward India becoming not just the world’s polishing hub but a fully integrated global production base for premium LGD jewellery, combining CVD manufacturing, cutting and polishing expertise, and consumer brand building under one geography.
The bigger picture is a country building the full stack at once — CVD manufacturing, cutting and polishing expertise, and now consumer brand-building, all under one geography. Whether India’s own shoppers catch up to India’s export numbers is the next chapter of this story.
Growth Opportunities
“The industry’s biggest opportunity lies in consumer education and standardization,” says Anand Lukhi adding, “While awareness has increased significantly, there is still confusion around certification, pricing, grading, and quality differences between products. Greater transparency, consistent standards, and widespread consumer education will help build trust and unlock the next phase of growth for the category.”
Pooja Madhavan adds, “The industry must collectively invest in clear communication around quality, certification, pricing transparency, and product differentiation. Greater awareness will strengthen consumer confidence, accelerate adoption, and help the category reach its full potential.”
“The single most critical hurdle the industry needs to fix to unlock its next phase of growth is shifting the consumer mindset from ‘synthetic investment’ to ‘wearable luxury’,” says Ricky Vasandani. “The industry must collectively re-educate the consumer to stop viewing lab-grown diamonds as a financial asset or an investment commodity. Instead, the narrative needs to firmly pivot toward fashion, self-expression, and functional utility—convincing the consumer that they are paying for the joy of wearing flawless luxury today, rather than the buyback value of tomorrow.”
“The industry needs a stronger, unified focus on consumer education. Greater clarity around what lab-grown diamonds are, how they are certified, and the value they offer will accelerate mainstream adoption,” concludes Sunny Singh of DAIMANTE.
