Lab-Grown Diamond Market Seen Expanding Rapidly
Union Home Minister Amit Shah has called on India’s gems and jewellery industry to ensure that the entire value chain of lab-grown diamonds remains under Indian control, highlighting the sector’s substantial long-term growth potential.
Addressing stakeholders from the gems and jewellery sector, Shah emphasised the importance of building a strong domestic ecosystem for lab-grown diamonds rather than relying heavily on external markets or overseas capabilities. He noted that the emerging industry could witness massive expansion, with the market having the potential to grow up to 50 times.
Lab-grown diamonds are produced using advanced technological processes that replicate the conditions under which natural diamonds are formed. Their growing acceptance across jewellery markets has created new opportunities for manufacturers, technology providers, exporters and other businesses involved in the diamond ecosystem.
Shah’s remarks underline the government’s broader focus on developing domestic manufacturing capabilities and ensuring that India captures a larger share of the economic value generated by emerging industries. Keeping the lab-grown diamond value chain within the country could help Indian companies participate across multiple stages, from technology and production to cutting, polishing, jewellery manufacturing and exports.
India already has a strong global position in diamond cutting and polishing, supported by an established network of skilled workers, manufacturers and exporters. Expanding capabilities in lab-grown diamonds could allow the country to build on this existing industrial base while developing expertise in newer technologies.
The potential expansion of the sector could also create opportunities for investment and employment, particularly as demand for lab-grown diamonds increases in domestic and international markets. Industry players may increasingly focus on improving production efficiency, developing advanced manufacturing capabilities and strengthening India’s position as a global hub for diamond processing.
The call for greater Indian control over the value chain comes at a time when the global gems and jewellery industry is undergoing changes in consumer preferences and production technologies. Lab-grown diamonds are emerging as an important segment, offering jewellery companies another product category alongside traditionally mined diamonds.
For India, developing a comprehensive domestic ecosystem could help ensure that a larger portion of the value generated by the rapidly evolving lab-grown diamond market stays within the country. The sector’s projected growth could therefore open new avenues for Indian manufacturers and exporters while strengthening the country’s role in the global diamond industry.
