After years of scrimping and saving, school teacher Sheetal Jain gifted herself a diamond ring for her 50th birthday – a princess-cut single carat diamond set in a plain band of yellow gold, for the princely sum of Rs four lakh. When she showed her prized acquisition to her closest friends, one expressed doubt on its proclaimed colour and clarity and advised her to check the accompanying certification. Jain, realising that no certification had been provided, returned to her jeweller with questions and learned that she had been overcharged and misled. Commiserating with her, the sympathetic friend advised, “Next time, just buy a lab-grown diamond. At least your money won’t go to waste!”
There is no denying that lab-grown diamonds are enjoying their moment in the sun. Viewed as affordable, fashionable and eco-friendly in comparison to their natural counterparts, they have certainly caught the imagination of the Indian middle class. According to a study conducted by market research firm Fortune Business Insights, the Indian lab-grown diamond market is poised for significant growth with a projection of reaching $1,192.3 million by 2033 from just $299.9 million in 2023.
Pooja Sheth, founder and managing director of Mumbai-based Limelight lab-grown diamonds says the reason for their significant growth is that they are indistinguishable from natural diamonds, unless tested in a lab. She explains, “Lab-grown diamonds are grown through the process of chemical vapour deposition (CVD). It is similar to the concept of test-tube babies, which are born through a different process with the same result.” Hence, CVD diamonds are real diamonds grown by replicating the diamond creation process which occurs below the surface of the earth bearing the same composition, properties and characteristics. The process of creating CVD diamonds also starts from a natural diamond seed which is replanted from the CVD diamond production. Diamonds grown in a lab can be produced in less than a month even though they are composed entirely of carbon with the same optical, thermal, physical, and chemical composition as naturally sourced diamonds.
Madhav Sethi is the second-generation jeweller at Delhi’s Gems Mart Jewellers and has been trained as a Diamond Grader at the Gemological Institute of America (GIA). Though his family has been in the business for over 26 years, he noticed an interest in the lab-grown variety of diamonds only last year. “Though our customers come to us primarily for natural diamonds, we can see an increase in queries for lab-grown diamonds for casual wear jewellery which people won’t worry about losing. Three carat solitaire earrings, or tennis bracelets with a row of single carat solitaire diamonds can be easily flaunted without the prohibitive price tags. What used to be reserved for the affluent can now be worn casually at relatively cheap prices,” he shares.
Shivika Poonglia, partner at Itara Jewelry which specialises in lab-grown diamonds has seen an increase in their demand since the brand’s launch in 2021. She highlights that many who previously bought only natural diamonds are now choosing lab-grown ones, especially for travel and gifting. “The perception has shifted. Younger buyers, in particular, appreciate the innovation and value they offer. At Itara, we have also seen rising interest in custom jewellery, with customers seeking unique, meaningful designs,” she adds.
A recent report by Mckinsey & Co. indicates that the price of natural diamonds has fallen in 2025 by about 30 percent from the high it reached during the pandemic. It puts this reduction down to the growing popularity of lab-grown diamonds, the economic downturn in China and the sanctions on Russian diamonds owing to the Ukraine war. Yet, reducing prices seem to have encouraged Indians to stock up on natural diamonds instead.
Natural diamonds have aspirational value and are viewed as legacy items that can be passed down to future generations. The same cannot be said of lab-grown diamonds whose monetary value has drastically reduced in the past five years – falling from 40 percent lower than the price of a natural diamond to 80 percent lower, as estimated by the Natural Diamond Council.
Sethi shares, “The supply of lab grown diamonds will always outpace their demand and continue to drive down prices. Hence, they have no chance of becoming investment grade. Each natural diamond has a unique fingerprint in terms of its clarity, and rarity is built into each aspect of colour, size, clarity etc. because they were formed billions of years ago. If you own a three carat Internally Flawless F-coloured natural diamond, that will mean a return on investment whenever you decide to sell it – now or decades later!”
Agreeing with this assessment, Gurugram-based jewellery designer Sangeeta Kapur says she is on the fence about lab-grown diamonds. “I’m not sure about the long-term valuation of lab-grown diamonds, and whether their easy availability will lead to such a drastic price drop that they become like costume jewellery. However, I’m always open to new avenues and may experiment with lab-grown diamonds in the future. Let’s wait and see.”