With the growing trends of consumer interest towards the lab grown diamond market in India, it is the second largest producer of lab grown diamonds(via HPHT method) in the world after China. The Indian government is set to tie knots with the industry players in making us the largest producer of lab based diamonds. A prediction by David Kellie, Chief Executive Officer(CEO) of Natural Diamonds Council(NDC) states:

“India is expected to lead the global natural diamond demand in 2024 due to its strong financial position and changing demographics.”

India contributes to about 15% of the world’s total production of lab grown diamonds. As per Statista, India produced around 1.5 Million carats worth of lab diamonds in FY 2020. Currently, the Indian lab grown diamond market has a growth rate of about 55%. Interestingly, India, in terms of producing lab-based diamonds using the CVD method, is the largest producer in the world owing to about 25% of the total LGD production.

We have also observed a 103% YoY increase in the export of the LGDs from FY 2020 to FY 2021. This ever-increasing industry is because of numerous reasons, as stated below: –

1. Rise in demand among GenZ

Younger generations, like millennials and GenZ, tend to prefer diamonds with different specifications of their interest. LGD industry offers diamonds with stunning quality and intricately attractive designs within a month’s production process. Unlike natural diamonds, which take a lot of time, LGDs of interest can be generated and be easily inculcated with the consumer requirements.

Besides, the LGDs, in general, are 50-60% less expensive than the otherwise available natural diamonds, which makes them an affordable option offering a similar look and grace. Also, youth nowadays are more focused on improving the planet due to rising awareness as the goal of sustainable development is highly promoted by buying and wearing such stones.

2. Trusted quality and brilliance

There are no proven tests that can differentiate between a lab based diamond and a diamond mined naturally. A consumer would any day prefer a product with a lower price point offering remarkably similar quality to the expensive ones.

3. Increasing Government Involvement

The Indian government has given a grant of approximately Rs. 200 crore to the Indian Institute of Technology, Madras (IIT Madras) for studying lab-grown diamonds and studying the trends in the industry as to what makes a person buy lab-grown diamonds. 

Conclusion 

India produces both kinds of LGDs, i.e., utilizing HPHT(High pressure, High temperature) and CVD(Chemical Vapor Deposition) methods. The expected CAGR of this industry in the Indian market from 2023 to 2033 is about 14.8%. With increasing awareness in promoting sustainable products and eco-friendly practices, people are shifting towards lab based jewelry with lower prices and various designs coordinating with their outfit, mood, occasion, etc.

Working women, in particular, will be able to buy such stones because of affordability and accessibility compared to the natural diamonds available in the market. This undoubtedly helps us conclude that this lab grown diamond market’s future is ever increasing and incredibly bright!