Whoever said “Diamonds are forever” probably didn’t anticipate that mined natural diamonds would not be forever. Young people are falling out of love with natural diamonds because of the huge hole it makes in both one’s pocket and the planet.
Thankfully, there’s now an alternative: lab-grown diamonds, which are both easy on the planet and the wallet. While a one-carat solitaire ring can set you back by Rs 2-4 lakh, a similar-sized lab-grown diamond costs just Rs 1-2 lakh, with almost difference in quality, at least to the naked eye.
Lab-grown diamonds and natural diamonds are identical in chemical composition and physical properties, but they differ primarily in their origin and formation process. Natural diamonds form over millions of years deep within the earth under extreme heat and pressure. In contrast, lab-grown diamonds are created in a controlled environment using methods like High-Pressure High-Temperature (HPHT) or Chemical Vapor Deposition (CVD), which can replicate these conditions in a matter of weeks.Laboratory-grown diamonds are made of the same chemical, optical and physical properties, and crystal structure as natural diamonds, and it’s virtually impossible to tell the two apart.
So what is trending: the natural glitter or the lab grown shine? “The lab-grown diamond market is influenced by various factors such as increasing consumer demand for sustainable, ethical, as well as cost-effective alternatives to natural diamonds. Lab-grown diamonds are created with a significantly lower environmental footprint, as they eliminate the need for mining, which is commonly linked to environmental harm and human rights issues,” says Karan Chechi, founder and chief executive officer, TechSci Research, a global management consulting firm. “In addition, Lab-grown diamonds are often priced 80-95% lower than natural diamonds making them a favourable option for the consumer.”
As evidence, he points to the market size for lab-grown diamonds, which was valued at $26.45 billion in 2024 and is expected to grow to $57.32 billion by 2030 with a CAGR of 8.38 per cent. In addition, there is a policy fillip, too. The government of India has increased initiatives to boost the production of lab-grown diamonds. A key move, effective from February 2025, is the elimination of tariffs on the importation of seeds used in the production of lab-grown diamonds. These seeds are essential for creating rough synthetic diamonds, and the removal of import duty will lower production costs for manufacturers. The GoI has also reduced duties on certain precious metals that are critical for the production and refinement of lab-grown diamonds.
“The exemption from customs duties on seeds used to create rough synthetic diamonds further enhances the viability of local production. Overall, these strategic initiatives are expected to propel the growth of the lab-grown diamond market in India, making it a significant player in the global lab-grown diamond market,” says Chechi.
Price Advantage
According to Shivika Poonglia, partner at Itara Jewelry, a Mumbai based lab grown diamond brand, “The price gap between natural and lab-grown diamonds is significant, especially as carat size increases. This difference is reshaping how people allocate their budgets. Instead of spending Rs 8-10 lakh on a single stone, buyers can opt for a Rs 1 lakh lab-grown diamond jewellery piece and invest the remaining amount elsewhere — whether in liquid assets, travel, or other purchases.”
Although the exact pricing depends on the four ‘C’s (carat, cut, colour, and clarity) and market conditions, lab‐grown diamonds tend to be roughly 30–50 per cent cheaper than a natural diamond of similar quality. For instance, a single carat lab-grown diamond of good quality might cost between Rs 1-Rs 1.2 lakh. In contrast, a one-carat natural diamond with comparable specifications could cost as much as Rs 2.5-Rs 4 lakh or more, depending on the rarity and demand.
“While we continue to work with ultra-rare natural diamonds (5+ carats, fancy colors) as popular investment pieces, lab-grown diamonds are increasingly preferred for everyday luxury, offering high quality without the premium price tag,” she adds.
“The future of the lab-grown diamond market looks incredibly promising. With increasing awareness, acceptance, and demand, lab-grown diamonds are gaining significant traction,” says Nisarg Shah, co-founder of Luna Diamonds, an Ahmedabad-based firm. “Advances in technology continue to enhance their quality and accessibility, while their price competitiveness makes them an attractive alternative to natural diamonds. Additionally, the growing emphasis on sustainability is driving more consumers toward ethical and eco-friendly choices, positioning lab-grown diamonds as a major player in the industry.”
Shah says that the price difference between a natural diamond and a lab-grown diamond, when all specifications like carat, cut, color, and clarity are the same, typically ranges from 40-50 per cent. Lab-grown diamonds also require the same care as natural diamonds. “To maintain their brilliance, we recommend regular cleaning with warm water, mild soap, and a soft brush,” says Itara’s Poonglia. “Avoiding exposure to harsh chemicals, especially household cleaners and chlorinated pools, helps preserve their lustre. Proper storage in soft pouches or a lined jewellery box prevents scratches and keeps the diamond looking pristine.”
Environmental and ethical concerns
Lab-grown diamonds also typically have a smaller environmental footprint and are free from some of the ethical concerns associated with mining. Often, lab-grown diamonds can be more affordable than mined diamonds due to the efficiency of the production process.
An ethically sourced lab-grown diamond is created using sustainable practices, fair labour conditions, and most importantly, minimal environmental impact. These days, manufacturers use renewable energy and do not contribute to environmental degradation – these facilities are sometimes completely carbon neutral. Many natural diamonds are also classified as ‘conflict diamonds’, meaning they have been mined in conflict-ridden regions, mostly in Africa, and often use violence and forced labour in the mines.
????How can a layperson differentiate between an ethically sourced lab-grown diamond and one that may not adhere to ethical standards? “Look for certifications. First is SCS-007 Sustainability Rated Diamonds. The SCS-007 certificate is a recognition given to diamond companies that comply with the SCS-007 Jewellery Sustainability Standard. The SCS-007 standard sets guidelines for sustainable practices in the production and trade of lab-grown diamonds and mined diamonds,” says Vidita Kochar, co-founder, Jewelbox, a Kolkata-based lab grown diamond brand. “Next is the Clear Neutral Certification Program which is an independent logo certification programme for carbon-neutral lab-grown diamonds, demonstrating to customers that diamonds have been responsibly produced with minimal environmental impact. Ethical brands disclose manufacturing details, energy sources, and labour policies.”
Kochar advises to check for “certification such as IGI (International Gemological Institute) or GIA (Gemological Institute of America) certification for authenticity. Also sustainability claims or SCS-007 Sustainability Rated Diamonds or Clear Neutral Certification Program for carbon-neutrality or sustainable growth. Check for disclosure of how and where the carbon seed used to create the lab-grown diamond was sourced. Examine the Quality factors and understand cut, clarity, colour, and carat weight (same as natural diamonds).”
