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

Stock image of people shopping in a mall
SurveysApr 03, 2025
2025 Retail Sales to Grow More Slowly Amid ‘Uncertainty,’ Says NRF

The National Retail Federation expects retail sales growth to return to pre-pandemic levels as consumers continue to face inflation.

Tallulah Willis’ Engagement Ring
TrendsApr 03, 2025
Tallulah Willis Imbues Antique Engagement Ring With Magic

The 4-carat, old mine brilliant-cut diamond engagement ring was co-designed by Willis and New York City-based brand Karina Noel.

158.2-carat yellow diamond from Diavik
SourcingApr 03, 2025
Canadian Mine Produces 158-Carat Yellow Diamond

Rio Tinto unearthed the diamond at its Diavik mine in Canada’s Northwest Territories.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Buccellati Naturalia exhibition
CollectionsApr 03, 2025
Buccellati to Open Immersive Exhibition in Milan

The multisensory experience, open April 8-13, will feature the brand’s silver creations among dream-like scenes of natural landscapes.

Weekly QuizApr 03, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Jewelers of America logo
Policies & IssuesApr 03, 2025
Jewelers of America to Hold Webinar on Tariffs

The virtual event will take place April 7 at 3 p.m.

Bea Bongiasca Animali Tarallo Collection Royal Blue Tang Fish “Dory”
CollectionsApr 02, 2025
Bea Bongiasca’s ‘Tarallo’ Collection Expansion Is a Zoo

The pieces in “Animali Tarallo” portray animals from stingrays to elephants through portraits and interpretations of their patterns.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Neiman Marcus Downtown Dallas store
MajorsApr 02, 2025
Neiman Marcus’ Dallas Flagship Will Remain Open, For Now

Parent company Saks Global said the iconic location will be open through the holiday season as it decides what to do with the space.

Natural color diamonds on display at Smithsonian National Museum of History
SourcingApr 02, 2025
Winston’s Collection of Natural Color Diamonds Now on Display in D.C.

Ronald Winston, son of Harry Winston, donated the diamonds to the Smithsonian National Museum of Natural History in Washington, D.C.

Punchmark
Events & AwardsApr 02, 2025
Punchmark to Host Client Workshop

The educational event will take place in Charlotte, North Carolina, this May.

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

QVC Group Inc. logo
MajorsApr 01, 2025
QVC Group to Cut 900 Jobs in the U.S.

The layoffs come amid the TV shopping channel’s efforts to restructure and focus on live shopping through social media.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Lashbrook ring
MajorsMar 31, 2025
Lashbrook Expands Into Luxury Golf Gifts With Acquisition

The Utah-based company known for making wedding bands has acquired Doubloon Golf.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

×

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