Lab-Grown Diamonds Mkt Now A Sunrise Sector

Ahmedabad: Gujarat’s gem and jewellery industry, especially in Surat, is witnessing a resurgence after a prolonged slowdown. Industry sentiment is on the rise, with traders declaring

a new sparkle in Gujarat’s diamond business.

According to the Gem and Jewellery Export Promotion Council (GJEPC), export volumes have tripled in recent months. However, the total export value dropped from $1,680 million in FY23 to $1,267 million in FY25, marking a 9.64 per cent decline. The key reason was a sharp fall in average per-carat prices of both lab-grown and natural diamonds.

Multiple global factors contributed to the slump, including soft demand, inflation, and economic uncertainties in major markets like the US and Europe. In China, consumers shifted toward gold as a safer asset. Sanctions on Russian diamonds disrupted rough diamond supplies, and a 10 per cent trade tariff on Indian diamonds in select markets further dented competitiveness.

These challenges led to high unsold inventories, financial distress, factory closures, and job losses across polishing hubs in Gujarat.

The turnaround began in March 2025, driven by a spike in demand for lab-grown diamonds (LGDs). Rising gold prices have made LGDs a popular choice for cost-conscious consumers and jewellers. The US market’s shift toward LGDs has provided a fresh boost to Indian exports.

GJEPC reports that domestic production has been ramped up to meet global demand. Industry insiders say international buyers are impressed by the quality and affordability of Indian LGDs.

With younger consumers showing a clear preference for LGDs, stakeholders in Surat are optimistic. “Lab-grown diamonds are making luxury accessible and sustainable,” a senior exporter said. “This is no longer a niche—it’s becoming a sunrise industry.”