For decades, diamond jewellery in India carried a familiar image: expensive, rare, mostly reserved for engagements, weddings, milestone gifts, or family purchases. That image is now changing and is being driven by lab-grown diamonds (LBD).
According to GIA, they are not imitation stones. Lab-grown diamonds have essentially the same chemical composition, crystal structure, optical and physical properties as natural diamonds. The difference lies in origin: one is formed below the earth over millions of years, the other is grown in a controlled laboratory environment using technology.
For India’s jewellery market, this difference is becoming important. It is changing who buys diamond jewellery, how much they spend, what designs they prefer, and how jewellers position fine jewellery for a younger Bharat.
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The Market is Still Small, but Growing Fast
According to Wazir Advisors data cited by IBEF, India’s diamond market was estimated at ₹53,512 crore, or about US$6.2 billion, in FY25 and is projected to reach ₹74,227 crore, or about US$8.2 billion, by FY28, growing at around 12% CAGR. Within this, India’s lab-grown diamond market was estimated at ₹3,452 crore, or about US$400 million, in FY25, and is projected to reach ₹5,179 crore, or about US$600 million, by FY28, growing at around 14% CAGR.
Another 2026 market estimate pegs India’s lab-grown diamond jewellery market at US$453.7 million in 2026, with projections of nearly US$1.8 billion by 2036 at 14.8% CAGR.
The numbers point to one clear trend: lab-grown diamonds are no longer a niche experiment. They are becoming a visible part of India’s fine jewellery conversation.
Why Bharat is Looking at LBDs
The biggest reason is price.
A lab-grown diamond cost significantly less than a natural diamond of similar size and quality. In India, market prices vary by brand, certification, cut, clarity and carat size, but many retail comparisons show lab-grown diamonds selling at roughly 60–80% lower prices than mined diamonds of comparable specifications. A recent India-focused comparison noted that a 1-carat lab-grown diamond may cost in the range of ₹35,000 to ₹1 lakh, while a similar mined diamond may cost ₹2 lakh to ₹5 lakh.
Earlier, many first-time buyers would choose a small diamond, postpone the purchase, or shift to gold jewellery. Now, the same budget can buy a larger stone, better clarity, or a more elaborate design. For a young salaried buyer, that matters. For a wedding purchase, it matters even more.
This is where lab-grown diamonds are creating a new entry point into fine jewellery. They are not replacing gold in India’s emotional economy, but they are making diamond jewellery easier to access.
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Why Younger Consumers are Driving the Demand
Gen Z and millennials are more open to lab-grown diamonds than older generations. Their buying priorities are different.
- They look for:
- Better design
- Fair pricing
- Certification
- Brand transparency
- Modern collections
- Wearability
- Many young buyers do not see jewellery only as an investment.
- They want pieces they can wear often.
- This is why lab-grown diamonds are working well for:
- Engagement rings
- Minimalist jewellery
- Statement rings
- Stackable bands
- Pendants
- Earrings
- Customised jewellery
Surat is Becoming a Key Epicentre
Surat already has a strong position in the global diamond industry. It is one of the world’s leading centres for diamond cutting and polishing. This existing ecosystem has helped India move faster in lab-grown diamonds.
- Surat has strengths in:
- Cutting
- Polishing
- Grading
- Jewellery manufacturing
- Exports
- Skilled labour
- Diamond trading networks
- Now, new technology is being added to this base.
- Lab-grown diamond production uses methods such as:
- CVD
- HPHT
- Diamond-growing machines
- Seed production
- Specialised polishing and certification
Exports show both opportunity and pressure
The export story is mixed, and that makes the market more interesting.
India’s overall gems and jewellery exports declined in recent years because of weak global demand, pressure in the US market and uncertainty around tariffs.
For FY2025-26, polished lab-grown diamond exports reportedly declined further to around US$1.13 billion, while the broader gems and jewellery export basket stood near US$27.7 billion.
But this does not mean the category is weak. It shows a different challenge: prices have fallen sharply because of rising supply. More stones are being produced, but export value is under pressure.
In simple terms, the market is selling more affordable diamonds, but every carat is earning less than before.
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What This Means for India’s Fine Jewellery Market?
Lab-grown diamonds are reshaping India’s fine jewellery market in five clear ways.
- First, they are lowering the entry barrier. A buyer who may not have spent ₹2 lakh on a natural diamond can now consider a diamond ring or pendant at a much lower price point.
- Second, they are changing design choices. Larger stones, fancy cuts and personalised designs are becoming more common because the stone itself is more affordable.
- Third, they are helping diamonds move beyond weddings. Daily wear, gifting, workwear and self-purchase are becoming important categories.
- Fourth, they are giving Indian manufacturers a new growth area at a time when natural diamond exports are under pressure.
- Fifth, they are forcing the industry to become more transparent. Pricing, certification, origin and resale expectations now need to be explained clearly.
The road ahead
As of May 2026, lab-grown diamonds stand at an important point in India.
Lab-grown diamonds are emerging as one of the fastest-growing segments in India’s fine jewellery market. Backed by lower prices, rising consumer awareness, Surat’s manufacturing strength, changing buying behaviour and growing acceptance among younger consumers, the category is making diamond jewellery more accessible across India. However, falling prices, export pressure, resale concerns and the need for transparent certification remain key challenges for the sector.
FAQs
Are lab-grown diamonds real diamonds?
Yes. Lab-grown diamonds have essentially the same chemical composition and brilliance as natural diamonds. The key difference is that they are created in laboratories rather than mined from the earth.
Why are lab-grown diamonds cheaper than natural diamonds?
Lab-grown diamonds are cheaper because they can be produced using technology in controlled conditions. Their supply is not limited in the same way as mined diamonds, which makes them more affordable.
Are lab-grown diamonds popular in India?
Yes. Lab-grown diamonds are gaining popularity in India, especially among younger consumers, first-time diamond buyers and those looking for affordable fine jewellery.
What is the price of lab-grown diamonds in India?
Prices vary by carat, cut, clarity, colour, certification and brand. In many cases, lab-grown diamonds are 60–80% cheaper than comparable natural diamonds.
Is Surat important for lab-grown diamonds?
Yes. Surat is a major diamond cutting and polishing hub and is now emerging as an important centre for lab-grown diamond manufacturing, processing and exports.
Do lab-grown diamonds have resale value?
Lab-grown diamonds generally have lower resale value than natural diamonds. They are better purchased for design, wearability and affordability rather than investment.