India’s natural diamond industry is looking to revive demand amid continued pricing pressure and growing competition from laboratory-grown diamonds, which offer consumers a lower-cost entry into diamond jewellery.
Natural cut and polished diamond exports declined to $12.16 billion in FY26, less than half the $24 billion recorded in FY22. ICRA expects exports to grow 6–8% in FY27, supported by stabilising prices, a potential improvement in US trade conditions and retailer restocking. However, the agency has retained a negative outlook for the sector, citing pricing pressure and competition from laboratory-grown diamonds.
India’s laboratory-grown diamond business has expanded significantly in recent years. According to ICRA, laboratory-grown diamond exports increased from $225 million in FY19 to $1.21 billion in FY25. Their share of India’s polished diamond exports rose from 0.9% in FY19 to 8.5% in the first 10 months of FY26, and is projected to reach 10–12% over the next two to three years. The price advantage remains a key factor, with laboratory-grown diamonds offering substantial savings compared with natural diamonds.
Consumer behaviour suggests that the two categories may serve overlapping but distinct segments. De Beers’ 2025 India Diamond Acquisition Study found that 76% of Indian women surveyed had heard of laboratory-grown diamonds, but only 20% said they understood the category fully. The study also found that 90% of consumers who purchased a laboratory-grown diamond as their first diamond expressed an intention to buy a natural diamond in the future, although future purchasing intentions may not necessarily translate into sales.
For the natural diamond trade, the focus remains on communicating the category’s distinct value proposition while ensuring clear product disclosure. Shweta Harit, senior vice-president at De Beers and Forevermark Global, expects both natural and laboratory-grown diamonds to grow over the next few years, while raising concerns about the sharp correction in laboratory-grown diamond prices.
As the market evolves, transparent disclosure, consumer education and differentiated positioning will remain important for retailers navigating demand across both categories.
