SourcingMar 15, 2023
Amid Uncertainties, India’s Diamond Industry Continues to Adjust Lab-GrownMar 15, 2023
India’s Lab-Grown Diamond Industry Is Growing Up
The mood is bullish as more companies get into the business despite the dramatic drop in lab-grown diamond prices.
An overhead shot of a solar farm for Greenlab, a lab-grown diamond manufacturer with more than 1,000 reactors spread out among four factories in Surat. Greenlab’s Smit Patel said India’s lab-grown diamond industry has seen “explosive and exponential growth.”
Mumbai—There is a growing buzz among gem and jewelry exporters in India these days as lab-grown diamonds have rapidly become a larger part of the industry.
In a period of five years, India’s exports of polished lab-grown diamonds have soared, from $197.9 million in 2017 to $1.72 billion in 2022, Gem and Jewellery Export Promotion Council figures show.
It is an incredible leap, by any measure.
It is an incredible leap, by any measure.
Multiple factors have fueled this growth, but the industry believes this is just the beginning.
At the just-concluded Hong Kong jewelry show, GJEPC Chairman Vipul Shah said the figure could reach $8 billion within the next three to four years.
The mood is bullish, further buoyed by two recent policy announcements made during the Government of India’s budget for 2023-24.
To boost what was described as “a technology and innovation-driven emerging sector with high employment potential” in the short run, customs duty on import of lab-grown diamond seeds used in manufacturing was reduced from 5 percent to zero.
Further, with a view to “encourage indigenous production of lab-grown diamond seeds and machines, and to reduce import dependency,” a research and development grant of $30 million was announced, subsequently allotted to one of India’s premier technology institutes, IIT-Madras.
Anup Zaveri, director of Real Illusion, one of India’s leading exporters of lab-grown diamonds, believes the announcement has boosted the industry’s credibility and visibility.
“Indian-manufactured lab-grown diamonds have already developed a significant presence in the U.S. market,” he said, adding that this reflects the maturity of older players, now experienced and highly skilled.
His own company, which began in 2019 with 24 reactors now has more than 80 at its diamond-growing unit in Jaipur.
“The stones are cut and polished in Surat, and we have an established network of buyers among U.S. retailers,” he said.
Smit Patel of Greenlab, another large manufacturer with more than 1,000 reactors spread over four factories in Surat, said the lab-grown diamond segment of the industry already has seen “explosive and exponential growth.”
As convener of GJEPC’s Lab-Grown Diamond Committee, Patel said India’s capacity has doubled in recent years.
How Big Is This Segment Today?
Estimates by industry players, analysts and trade bodies place the total number of reactors at between 4,000 to 6,000, producing upward of approximately 1.5 million carats of rough annually.
These numbers are likely to continue to rise, as many companies invest in expansion, and existing units for polishing mined diamonds shift some of their capacity to polishing lab-grown diamonds.
Currently, the lab-grown diamond industry employs between 250,000 and 400,000 workers, and these numbers are clearly heading north.
Is This Growth Causing Oversupply and Price Correction?
In India, at least, no alarm bells are ringing over the dramatic drop in retail prices of lab-grown diamonds and jewelry. Most view this as expected due to the changing nature of the market.
Patel, of Greenlab, reflects the industry mood while stating that market dynamics will always result in some price swings, but the situation is “now stabilizing as more and more buyers are seeing the benefits of working with a consistent supplier.”
India, though a late entrant, has now developed capacities across all sizes, shapes, and colors.
Real Illusion, for example, deals in lab-grown diamonds between 1 and 10 carats in size, focusing on colorless rounds.
Zaveri said the company is also supplying lab-grown diamonds for bridal jewelry and opines there is a growing acceptance of the use of lab-grown diamonds for engagement rings and other wedding jewelry.
Greenlab has an even wider range of sizes, ranging from 2-20 carats. Last year, it manufactured a polished diamond of 27-plus carats, reportedly the largest lab-grown diamond made in India.
Both companies believe their earlier investments in technology and research and development are now paying dividends.
Their experiences are in sync with what India’s government is pushing for—investment in developing technology and expertise today that will yield dividends tomorrow.
The government’s Ministry of Commerce, which consulted with a joint committee of government, the GJEPC and industry representatives in allotting the grant to IIT-Madras, said research efforts would “make the technology available for start-ups at an affordable cost, increase employment opportunities, increase exports of lab-grown diamonds and thus play a significant role in fueling India’s economic growth.”
What Does the Future Hold?
It is almost certain there will be a rapid boom in production of lab-grown diamonds initially fueled by cheaper imports of seeds and, subsequently, by the entry of new manufacturers as technology becomes more accessible.
But there is another trend that is already surfacing—the move to manufacture lab-grown diamond-set jewelry for the export market. Many larger manufacturers already have launched forays in that direction, while new entrants abound.
An example is Dazzling Jewels, a part of the over-a-century old KGK Group, which already has a strong global presence across most segments of the gem and jewelry value chain.
Amar Singhvi, who heads the initiative, said, “We have newly entered this segment, less than a year ago, but the response has been very positive.
“We plan to focus on fashion jewelry for the U.S. and Middle East, with prices in the range of $200-300 per carat.”
Related stories will be right here …
More on Lab-Grown
The Latest
AuctionsFeb 26, 2026
Noonans to Auction Lady Wardington’s JewelryThe jewelry collection belonged to “one of society's most glamorous and beautiful women of the mid-20th century,” said the auction house.
SourcingFeb 26, 2026
Anglo American CEO Gives Insight Into De Beers SaleThe update came as Anglo took its third write-down on the diamond miner and marketer, which lost more than $500 million in 2025.
ColumnistsFeb 26, 2026
Practical Ways Jewelers Can Leverage AI in 2026Emmanuel Raheb discusses the rise of “GEO” and the importance of having well-written, quality content on your website.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
CrimeFeb 26, 2026
Three Sentenced in California Jewelry HeistEach received around four years for burglarizing a jewelry store and a coffee shop in Simi Valley, California, last May.
Weekly QuizFeb 26, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsFeb 26, 2026
GIA Names 2026 Jewelry Design Contest Winner, Retires Annual AwardCatherine Aulick, a GIA graduate, received the ninth and final Gianmaria Buccellati Foundation Award for Excellence in Jewelry Design.
TrendsFeb 25, 2026
Engagement Ring Trends 2026: What’s In, and WhyWe asked a jewelry historian, designer, bridal director, and wedding expert what’s trending in engagement rings. Here’s what they said.
Brought to you by
DCA Enters a New Chapter in Jewelry EducationWith refreshed branding, a new website, updated courses, and a pathway for growth, DCA is dedicated to supporting retail staff development.
SourcingFeb 25, 2026
7 Trends That Could Define the Diamond Industry’s FutureExperts from India weigh in the politics, policies, and market dynamics for diamantaires to monitor in 2026 and beyond.
EditorsFeb 25, 2026
Q&A: Brilliant Earth’s CEO on the New Beverly Hills StoreBeth Gerstein discusses the vibe of the new store, what customers want when fine jewelry shopping today, and the details of “Date Night.”
PodcastsFeb 25, 2026
Episode 2: Jewelry Trends & Does the Red Carpet Matter?Are arm bands poised to make a comeback? Has red-carpet jewelry become boring? Find out on the second episode of the “My Next Question” podcast.
WatchesFeb 25, 2026
Private Equity Firms Write Down Value of Breitling, Report SaysThe Swiss watchmaker is battling declining sales amid a rapid retail expansion, according to a Financial Times report.
CollectionsFeb 25, 2026
Rahaminov Diamonds’ New Campaign Honors Its MatriarchThe campaign celebrates Giustina Pavanello Rahaminov, the co-founder’s wife and matriarch of the family-owned brand, for her 88th birthday.
IndependentsFeb 25, 2026
Borsheims Names 2025 ‘Ike-It’ Award WinnerRachel Bennett, a senior jeweler who has been with Borsheims since 2004, earned the award.
Policies & IssuesFeb 24, 2026
IEEPA Tariffs Terminated, New 10% Tariff Already ImposedAfter the Supreme Court struck down the IEEPA tariffs, President Trump imposed a 10 percent tax on almost all imports via a different law.
IndependentsFeb 24, 2026
Sherry Smith Now Principal Partner at The Retail SmithsThe industry veteran, who was with The Edge Retail Academy for 14 years, joins her husband at the company he founded in 2022.
IndependentsFeb 24, 2026
Yafa Signed Jewels to Open Store in MiamiThe vintage signed jewelry retailer chose Miami due to growing client demand in the city and the greater Latin American region.
WatchesFeb 24, 2026
Chrono24 Names New VP, U.S. General ManagerFormer Flight Club executive Jin Lee will bring his experience from the sneaker world to the pre-owned watch marketplace.
SourcingFeb 23, 2026
Designer Eddie Sakamoto, a Humble Artist, Dies at 72Sakamoto, who died in mid-January following a sudden illness, is remembered for his humility and his masterful, architectural designs.
Events & AwardsFeb 23, 2026
NYCJAOS Announces Four-Day Spring ShowThe April event will feature a new VIP shopping day requiring a special ticket.
TrendsFeb 23, 2026
Dua Lipa Is Bulgari’s New AmbassadorBulgari chose the British-Albanian singer-songwriter for her powerful and enduring voice in contemporary culture, the jeweler said.
Policies & IssuesFeb 20, 2026
Supreme Court Rules Against Most of President Trump’s TariffsIn a 6-3 ruling, the court said the president exceeded his authority when imposing sweeping tariffs under IEEPA.
ColumnistsFeb 20, 2026
Peter Smith: Happiness, Cavemen, and Jewelry SalesSmith encourages salespeople to ask customers questions that elicit the release of oxytocin, the brain’s “feel-good” chemical.
MajorsFeb 20, 2026
Jewelers Vigilance Committee Names Julie Yoakum Board ChairJVC also announced the election of five new board members.
CollectionsFeb 20, 2026
Boucheron’s ‘Faisceaux’ Brooch Heads to V&A MuseumThe brooch, our Piece of the Week, shows the chromatic spectrum through a holographic coating on rock crystal.
IndependentsFeb 19, 2026
Bailey’s Fine Jewelry Co-Founder ‘Mama Ann’ Bailey Dies at 100Raised in an orphanage, Bailey was 18 when she met her husband, Clyde. They opened their North Carolina jewelry store in 1948.
IndependentsFeb 19, 2026
Material Good Opens Third Location Material Good is celebrating its 10th anniversary as it opens its new store in the Back Bay neighborhood of Boston.
