Lab-Grown

India’s Lab-Grown Diamond Industry Is Growing Up

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.

20230315_LGD solar farm drone shot.jpg
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.
 
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 … 

The Latest

3 natural diamond engagement rings by Marrow Fine, Stephanie Gottlieb, Single Stone, and Sylvie Jewelry
TrendsFeb 12, 2025
5 Engagement Ring Trends Expected to Rule 2025

From chunky bands to vintage diamond cuts and bezel settings, these are the trends experts are seeing take over the bridal market.

Jean Prounis cushion-cut diamond engagement ring
EditorsFeb 12, 2025
Q&A: Marion Fasel on the History of Diamond Engagement Rings

Fasel discusses researching her new book, the most enduring engagement ring styles, and the diamond shape Taylor Swift will pick.

De Beers Jewellers Embrace Bracelet
CollectionsFeb 12, 2025
De Beers Jewellers’ New High Jewelry Pays Homage to the Beauty of Trees

The “Essence of Nature, Chapter One” collection echoes trees and roots, literally and figuratively, through three sets of high jewelry.

Top Image.png
Brought to you by
3 Ways to Capitalize on America’s Newfound Love of Colored Gems

Colored stones are stepping into a jewelry spotlight typically reserved for diamonds—are you ready to sell color?

Shree Ramkrishna Exports (SRK) diamonds
SourcingFeb 12, 2025
SRK Announces Notable Reduction in Greenhouse Gas Emissions

Late last year, the India-based diamond manufacturer recorded emissions per carat that are 34 percent lower than the industry average.

Weekly QuizFeb 06, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Peter Smith
ColumnistsFeb 12, 2025
Peter Smith: 9 Store Manager Archetypes

Smith details the types of store managers he’s encountered, with the goal of helping retailers find a person who’s a fit for their store.

myGemma showroom
TechnologyFeb 12, 2025
MyGemma Now Offers Consignment Service

The secondhand reseller stocks pre-owned designer jewelry and watches, along with other luxury goods.

Resolutions - 2025.jpg
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers

The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.

 Ghirardelli Chocolocket
CollectionsFeb 12, 2025
Ghirardelli Is Slipping Chocolate Into a Locket This Valentine's Day

The limited-edition “Chocolocket” fits a mini square of Ghirardelli chocolate inside.

Jewelers of America 20 Under 40 graphic
Events & AwardsFeb 11, 2025
JA Seeking Nominations for Its Next ‘20 Under 40’ Class

The program has been expanded to include a “20 Under 40” list for jewelry suppliers and is accepting nominations through Feb. 19.

Police cars with lights on
CrimeFeb 11, 2025
2 Men Charged With Selling Stolen Jewelry, Watches in NYC Diamond District

One of the men is said to be connected to the South American crew charged with burglarizing Cincinnati Bengals QB Joe Burrow’s home.

Bulgari x MB&F Serpenti watch
WatchesFeb 11, 2025
Bulgari, MB&F Launch Reimagined ‘Serpenti’ Watch

The brands immersed one of Bulgari’s most famous historical icons in MB&F’s ultra-mechanical universe of haute horlogerie.

Boucheron Power of Couture campaign
FinancialsFeb 11, 2025
Boucheron a Bright Spot as Kering’s Full-Year Sales Sink 12%

The luxury titan’s full-year performance was weighed down by struggling sales at its star brand Gucci.

Midas Chain Diamond and Gemstone Jewelry
MajorsFeb 11, 2025
Midas Chain Releases First Diamond Collection

The jewelry manufacturer has launched more than 100 pieces made with natural diamonds.

Tacori Stilla ring
SurveysFeb 10, 2025
Jewelry Resilient in 2024 Even As Luxury Sales Slipped, Says Bain & Co.

Bain & Co.’s latest report on the luxury market examines why the market’s customer base is shrinking and how to appeal to consumers in 2025.

Counterfeit Cartier “Juste Un Clou” bracelet
CrimeFeb 10, 2025
Counterfeit Jewelry Kept Kentucky Customs Agents Busy in January, CBP Says

Officers in Louisville seized 28 shipments of fake jewelry and watches that would have been worth more than $27 million if genuine.

Hearts On Fire Inside Out Collection Bracelets
CollectionsFeb 10, 2025
Hearts on Fire Flips Jewelry ‘Inside Out’ in New Collection

The collection centers on the art of tailoring, inspired by designs that feature folded fabrics, such as a tuxedo lapel.

JW Marriott Hotel in Nashville Tennessee
Events & AwardsFeb 10, 2025
Select Jewelry Show Heads to Nashville

The trade show has added a new location to its fall line-up.

Jade Trau Ladybird Charm
CollectionsFeb 07, 2025
Piece of the Week: Jade Trau’s ‘Ladybird’ Charm

From the brand’s latest collection of lucky charms, the ladybird is seen as a bearer of good fortune and a ward against negative energy.

Rough diamonds from De Beers’ Gahcho Kue diamond mine in Canada
SourcingFeb 07, 2025
De Beers’ Production Guidance Slashed, Anglo Anticipates Another Writedown

The moves come amid a prolonged period of lower demand for diamonds, particularly in China.

Stuller Bench Jeweler Workshop
Events & AwardsFeb 07, 2025
Registration Opens for Stuller’s Bench Jeweler Workshop

The workshop returns in March, along with the “Battle of the Benches” mini challenge series.

Windsor Jewelry in Indianapolis, Indiana
IndependentsFeb 06, 2025
106-Year-Old Jewelry Store Saved by New Owners

Two attorneys purchased Windsor Jewelry, which was set to close, and will retain all existing staff at the downtown Indianapolis store.

Two images of Adam Heyman in Sri Lanka
MajorsFeb 06, 2025
Oscar Heyman Employee Celebrates 60 Years With the Company

Adam Heyman joined the family business in 1965, just weeks after graduating from Columbia Business School.

Hamilton Jewelers Worth Avenue interior
IndependentsFeb 06, 2025
Hamilton Jewelers Revamps Palm Beach Boutique

The fourth-generation, family-owned jeweler has given its Worth Avenue store a new look.

Stock image of a gavel
CrimeFeb 05, 2025
‘The Timepiece Gentleman’ Sentenced to 5-Plus Years Behind Bars

Luxury watch dealer Anthony Farrer pleaded guilty late last year to defrauding clients in a scheme with Ponzi-type elements.

Pandora sparkling bow necklace
FinancialsFeb 05, 2025
Pandora Posts Double-Digit Growth After Strong Holiday Season

In its full-year results, the retailer shared its 2025 outlook and an update on the global rollout of its lab-grown diamond collection.

Seal & Scribe “Freedom Moon” Ring
TrendsFeb 05, 2025
Amanda’s Style File: Feeling Fabulous in February

Celebrate February birthstones and the gem shows in Arizona this month with a versatile stone like amethyst.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy