A lab-grown diamond (LGD) is produced inside a laboratory using technology replicating the formation of a natural diamond. It is optically similar to a natural diamond but priced at a significant (up to 90%) discount to natural diamonds. Indian LGD exports have grown six-fold from $225 million in FY2019 to $1,207 million in FY2025. Despite the challenging demand conditions for polished diamonds, given the attractive price proposition of LGDs, their share in overall CPD exports has risen to 8.5% in 10M FY2026 from 0.9% in FY2019.

Exhibit : Major LGD producing nations (CY2024) (in volume terms)

Source: ICRA Research