India Boosts Lab-Grown Diamond Market with New Regulations and Price Appeal

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AuthorIshaan Verma|Published at:
India Boosts Lab-Grown Diamond Market with New Regulations and Price Appeal
Overview

India's lab-grown diamond (LGD) sector is poised for significant expansion in 2026, driven by official regulatory clarity, growing consumer acceptance, and retail growth. New standards adopt 'laboratory-grown diamond' terminology, enhancing transparency. A substantial price difference versus natural diamonds is making LGDs accessible to a broader demographic, projecting market growth from $450 million to $1.2 billion by 2030-31.

India's laboratory-grown diamond (LGD) industry is set to enter a pivotal phase in 2026. New regulations officially endorse the terms 'laboratory-grown diamond' and 'laboratory-created diamond', explicitly prohibiting misleading descriptors like 'fake' or 'artificial'. This standardization aims to bolster consumer trust and ensure clear point-of-sale information.

The significant price differential remains a primary catalyst. While a one-carat natural diamond can range from ₹70,000 to ₹5 lakh, a comparable lab-grown stone typically falls between ₹20,000 and ₹80,000. This affordability is expanding the market to younger consumers and those in smaller cities.

Market Growth Projections

Industry figures estimate India's LGD market at approximately $450 million for 2023-24. Projections indicate a robust growth trajectory, forecasting the market to reach $1.2 billion by 2030-31, signaling substantial long-term potential.

Globally, LGDs have evolved from a niche product to a significant market segment, capturing nearly 20% of the market share by 2024, up from 5% in 2018. India is mirroring this trend, with volume growth expected to outpace value growth in the coming years.

Drivers of Demand

Both cost-effectiveness and ethical considerations are shaping consumer demand. Nirav Bhansali, CEO of Prism Jewellery, highlighted the dual advantage: "So sustainability as well as affordability, they both are playing in favour of lab grown diamond space." Younger buyers are increasingly focused on responsible sourcing alongside seeking value and design flexibility.

Retail Expansion and Integration

Retail expansion is accelerating. Pooja Sheth, Founder and MD at Limelight Diamonds, detailed a strategic shift toward full vertical integration, aiming for a complete 'rocks to retail' model. This approach involves controlling the entire value chain, from diamond creation to the final retail product.

Limelight Diamonds has expanded its presence across major metropolitan and smaller cities, reflecting broader market acceptance. The entry of established large jewellery players further legitimizes the LGD category, diminishing past hesitations. With enhanced certification, expanding retail networks, and growing use cases from everyday wear to special occasions, LGDs are solidifying their position as a significant market category alongside natural diamonds.

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