India’s laboratory-grown diamond (LGD) industry is entering a decisive phase in 2026, backed by regulatory clarity, wider consumer acceptance and rapid retail expansion.

Under the new standard, India is officially adopting the term ‘laboratory-grown diamond’ and ‘laboratory-created diamond’, while disallowing misleading or outdated descriptions such as "fake" or "artificial". The move is expected to boost consumer confidence, enhance credibility, and ensure transparency at the point of sale.

Price remains a key driver. A one-carat natural diamond can cost anywhere between ₹70,000 and ₹5 lakh, while a similar lab-grown stone is typically priced between ₹20,000 and ₹80,000. This gap has made diamonds accessible to a much larger base, especially younger buyers and consumers in tier-two and tier-three cities.

Industry estimates show India’s lab-grown diamond market at around $450 million in 2023-24, with projections of $1.2 billion by by 2030-31, underlining strong long-term potential.

Globally, lab-grown diamonds have moved from a fringe category to a meaningful share of the market, rising from about 5% in 2018 to nearly 20% by 2024. India is following a similar path, with growth expected to be faster in volumes than value over the next few years.

From an industry perspective, both cost and ethics are shaping demand. Nirav Bhansali, CEO, Prism Jewellery, believes the category benefits from a dual advantage.

“So sustainability as well as affordability, they both are playing in favour of lab grown diamond space,” he said. Younger consumers are increasingly mindful of sourcing, while also seeking value and design flexibility.

Retail expansion is picking up pace. Pooja Sheth, Founder and MD at Limelight Diamonds, said the company is moving towards full vertical integration to strengthen its position. “We are now going to be an entire 'rocks to retail' story,” she said, highlighting the shift towards controlling the entire value chain—from growing diamonds to retailing finished jewellery.

Limelight has expanded rapidly across metros as well as smaller cities, reflecting the broadening acceptance of lab-grown diamonds.

The entry of large, established jewellery players has further legitimised the category, reducing hesitation that existed a few years ago. With improving certification standards, expanding retail networks and growing use cases—from weddings to everyday and occasion wear—lab-grown diamonds are emerging as a parallel category rather than a niche.

As 2026 unfolds, the sector appears set for faster volume growth, deeper penetration and intensifying competition across India’s jewellery market.

Courtesy: CNBC TV 18