Editor’s Note
This article explores the rise of lab-grown diamonds, examining how modern science is reshaping a timeless symbol of luxury and what this means for the future of the industry.
A diamond is forever and has been for generations the symbol of love, legacy and luxury. Its beauty, unchanging and pure, has made it timeless. But in a world that is constantly evolving, even the most enduring symbols are being reimagined.
Laboratories are changing the very nature of luxury globally, especially in India. Indistinguishable from natural diamonds, these are not knock-offs; they are lab-grown diamonds. What once lay beneath the earth’s surface for millions of years can now be created in a laboratory above it. They dazzle the same way and last forever but without the ethical burdens of a natural diamond. And in this story, India is emerging as both an innovator and a global leader.
The biggest myth that has followed the lab grown diamonds is that they are fake, yet the fact is that they are chemically, physically and optically the same as natural diamonds. They are also formed through state of art technologies like the chemical vapour deposition (CVD) and high-pressure high temperature (HPHT). Simply put they are diamonds, which have been built out of a carbon seed in a laboratory under the exact conditions that one would otherwise have on the earth.
Gemmologists, even those who are well experienced, cannot identify them without the help of sophisticated equipment, which can tell them apart from natural diamonds. The natural diamonds contain small traces of nitrogen, whereas the lab-grown diamonds are nitrogen-free, which is one of the determining factors professionals refer to during their identification. This is where India enters into the picture.
As of 2024 around 90% of the world’s diamonds are processed in India, accounting for approximately 75% of global turnover by value, according to Industrial Extension Bureau (iNDEXTb). But India is now doing more than just polishing, it is also producing.
According to Wazir Advisors, India’s diamond market is estimated at Rs. 53,512 crore (US$ 6.2 billion) in FY25 and is projected to grow to Rs. 74,227 crore (US$ 8.2 billion) by FY28, with a compound annual growth rate (CAGR) of 12%. While lab-grown diamonds represent a smaller, yet significant portion, the market’s value is estimated to be at about Rs. 3,452 crore (US$ 400 million) in FY25 and is poised to grow to Rs. 5,179 crore (US$ 600 million) by FY28, with a CAGR of 14%, according to Wazir Advisors.
In 2023, India produced over three million lab-grown diamonds, accounting for over 15% of the world’s total output, as per iNDEXTb.
Recognising the potential of lab-grown diamonds, the Government of India has introduced several supportive measures:
Seed grant: In the Union Budget of FY24, the Government provided a five-year Rs. 242 crore (US$ 28 million) seed grant to help set up a centre of laboratory-grown diamonds at the Indian Institute of Technology (IIT), Madras.
100% Foreign Direct Investments (FDI): The gems and jewellery sector, which entails laboratory-grown diamonds, has been opened to allow 100 % Foreign Direct Investments (FDI) to promote international investments.
Additionally, regulatory frameworks are being made clearer, and certifications specifically catered to lab grown diamonds are being created to increase consumer confidence. This push will help India become not just a polishing hub, but also a global manufacturing base for green luxury.
One of the strongest selling points of lab-grown diamonds is their lighter environmental impact. Compared to traditionally mined natural diamonds, lab-grown diamonds:
Use up to 90% less water
Emits fewer greenhouse gases
Requires no environmental disruptions or heavy machinery
Is essentially conflict free and has nothing to do with human rights abuse or conflict funding that has marred select segments of the natural diamond
