Lab-Grown Diamonds in India (2025): A Sparkling Disruption with Numbers that Matter

If you think diamonds are forever, lab-grown diamonds are here to challenge that belief with facts, figures, and a new story that is uniquely Indian.

In May 2025, India’s exports of polished lab-grown diamonds fell by 32.8%, while gold jewellery exports surged by 17.2%. Two opposite trends playing out in the same market. One struggling, the other thriving. (TOI, 2025)

The numbers don’t lie. They show us that lab-grown diamonds are no longer a passing experiment they are part of a tug-of-war between age-old tradition and modern practicality. And in India, where jewellery is not just fashion but also culture, heritage, and financial security, this battle is fascinating to watch.

What Exactly Are Lab-Grown Diamonds?

Let’s keep it simple. Lab-grown diamonds are real diamonds. They have the same sparkle, the same hardness, and the same chemical structure as mined diamonds. The only difference is their origin. Instead of being pulled from the earth after millions of years of natural formation, they are grown in labs in a matter of weeks using advanced technology.

This is not to be confused with fake stones like cubic zirconia or American diamonds. Lab-grown diamonds can pass the same quality tests as natural ones. If you showed both to a jeweller without context, many wouldn’t be able to tell the difference without special tools.

Why Lab-Grown Diamonds Are Catching Attention in India

1. Price Advantage

Indian weddings are grand, emotional, and expensive. A traditional mined diamond engagement ring of 1 carat often costs upwards of ₹5–6 lakh. The same size and sparkle in a lab-grown diamond can cost just ₹1.8–2 lakh. That’s a 70% saving.

For a young couple juggling EMIs, student loans, and aspirations for a honeymoon in Europe, the math is irresistible.

2. Ethical Choice

The stories of “blood diamonds” are no longer whispered—they’re on YouTube, Netflix, and Instagram reels. Today’s buyers want to know that their jewellery isn’t tainted by human suffering. Lab-grown diamonds remove that doubt. They allow people to wear sparkle with a clean conscience.

3. Sustainability Angle

Diamond mining often damages ecosystems. Lab-grown diamonds, though not completely energy-neutral, require fewer resources and are considered more environmentally friendly. In a country where climate change is impacting daily life, scorching summers, erratic monsoons, this argument resonates strongly with Gen Z and millennials.

The Indian Market: By the Numbers

The Indian lab-grown diamond jewellery market was valued at USD 299.8 million in 2023. By 2032, it’s projected to cross USD 1 billion, growing at a 14.1% CAGR. (LGD Times, 2025)

Globally, the US and India together are expected to grow the LGD market from USD 14.7 billion in 2023 to USD 37.4 billion by 2031. (Allied Market Research, 2025)

In India specifically, lab-grown diamond jewellery accounted for about 8.4% of the total diamond jewellery market in 2023. That share is steadily climbing. (MyWisdomLane, 2024)

Surat, the world’s diamond polishing hub, is a major player. LGD exports rose from 7.81 million carats in FY 2023–24 to 15.29 million carats in FY 2024–25, nearly doubling volume in just one year. (TOI, 2025)

Family, Tradition, and the “Shaadi” Factor

Ask any Indian family about jewellery, and you’ll hear the same phrase: “It’s an investment.” Jewellery here isn’t just about beauty; it’s about security, respectability, and family legacy.

Gold has always been the safe haven. In 2025, with gold exports rising 17.2%, it’s clear that India’s heart still beats for gold. Diamonds, whether natural or lab-grown, are yet to achieve that universal trust.

Take the example of my cousin’s engagement earlier this year. She chose a lab-grown diamond ring for around ₹2 lakh. Her mother hesitated at first: “Will it hold value in the long run?” For her, jewellery wasn’t just adornment it was future collateral, a hidden backup for emergencies. But the younger generation views diamonds more as emotional symbols than financial assets. For them, value lies in affordability and ethics, not resale.

This generational difference is shaping the market. Parents may still prefer natural diamonds for prestige, but young buyers are leading the LGD wave.

The Pushback: Why Everyone Isn’t Convinced

• Resale Value Concerns: Unlike gold, lab-grown diamonds don’t have a strong resale market yet. A natural diamond may hold 50–60% of its value if sold back. Lab-grown stones often depreciate faster.
• Industry Resistance: De Beers and other traditional players emphasise rarity. They remind consumers that natural diamonds are finite and, therefore, irreplaceable.
• Export Pressures: India’s LGD export value dipped by nearly 9.6% in FY 2024–25. Meanwhile, Surat’s real estate sector also slowed, with new approvals falling from 724 in 2022–23 to 553 in 2024–25, partly because diamond-related incomes softened. (TOI, 2025)

The Government and Institutional Push

The Indian government is not ignoring this shift. IIT Madras received ₹242 crore from the Ministry of Commerce to spearhead LGD technology. The aim? To make India self-reliant (Atmanirbhar) in this sunrise industry. (Incent LGD IITM, 2025)

Certification bodies are also stepping up. IGI expanded facilities in Surat and launched advanced services like “Light Performance Analysis” in addition to the classic 4Cs (Cut, Clarity, Colour, Carat). With a 24% rise in LGD certifications year-on-year, trust is slowly being built. (TOI, 2025)

Cultural Shifts in Design

Lab-grown diamonds are also influencing how jewellery looks:

• Minimalism is in. Solitaire rings in oval or pear cuts are popular among millennials, who prefer understated elegance over flashy sets.
• Personalisation matters. Couples are embracing initials, zodiac motifs, and engraved jewellery. Lab-grown diamonds fit perfectly into this customised trend.
• Accessible luxury. A middle-class family that once couldn’t dream of buying a 1-carat diamond ring can now afford one. This is quietly democratising luxury.

The Bigger Picture

Lab-grown diamonds aren’t here to erase natural diamonds. They’re here to redefine choice. For one buyer, value may lie in rarity and tradition. For another, it’s about saving money while staying ethical.

In a way, LGDs mirror India’s journey itself, anchored in tradition, yet hungry for progress. They offer a sparkle that is modern, practical, and inclusive.

When my niece, who’s 24, showed me her lab-grown ring, she wasn’t worried about resale. She said: “I’d rather save the extra ₹3 lakh for a down payment on a flat.” That single statement captures why LGDs matter in 2025 India.

Final Thoughts

The lab-grown diamond industry in India is both shining and stumbling. Exports dipped sharply in 2025, but domestic acceptance is rising steadily. The cultural tug between parents valuing legacy and young people valuing affordability is real. And through this, LGDs are finding their place not as replacements, but as alternatives.

In 2025 India, lab-grown diamonds are not just stones. They’re symbols of practicality, conscious living, and a sparkle that reflects the aspirations of a new generation.