Lab-grown diamonds gain ground in India’s smaller cities

Lab-grown diamonds (LGDs) are moving beyond India's metros, gaining traction in tier-2 and tier-3 cities as the price gap with natural stones widens, The Economic Times reports. The discount on LGDs against natural diamonds has widened to as much as 90% this year from about 70% in 2025. A premium-quality LGD carat now costs around Rs 50,000-80,000, compared with Rs 2.0-3.5 lakh for a natural diamond carat.

Industry executives say LGDs now account for nearly 10% of India's Rs 80,000 crore diamond market. Lisa Mugdhekar, founder of LGD brand Aukera, said North and South India are front runners in adopting LGDs, with West India picking up. Pooja Madhavan of Limelight Lab Grown Diamonds noted that rising gold prices and greater awareness are driving demand in emerging markets. Vaibhav Karnavat of House of Quadri said a two-carat lab-grown solitaire can be 80-90% more affordable than a comparable natural diamond.

India produces around 20 million carats of LGDs annually, giving jewellers a growing domestic supply base. Demand is rising in cities including Pune, Indore, Jaipur, Lucknow, Surat, Nagpur, Hyderabad, Bengaluru and Chennai. Limelight now has about 80 stores in 45 cities and plans to exceed 100 by 2026.