The report states that India has strategic advantages that make it a natural hub for lab-grown diamond production and export
While highlighting that India is not just participating in the lab-grown diamond (LGD) revolution but leading it, a report has stated that the country holds several strategic advantages that make it a natural hub for lab-grown diamond production and export.
Redseer Strategy Consultants, in its report, stated that the existing diamond infrastructure, cost-efficient craftsmanship and government support is driving this growth. With India already responsible for cutting and polishing of over 90 per cent of the world’s diamonds, this provides a robust infrastructure for backwards integration into LGD manufacturing.
With India enjoying a skilled and competitive labour cost, this enables mass production at lower price points than most countries and makes India a hub for both luxury and mass-market LGD jewellery. On the government end, research grants, favourable foreign direct investment (FDI) regulations, customs duty exemptions and policy incentives are fuelling investment in LGD manufacturing and certification.
“India leads the global LGD startup ecosystem with over 35 LGD startups, the largest in the world. Investor confidence is rising sharply. In the first three months of 2025 alone, Indian LGD startups raised over USD 14 million, over 50 per cent year-on-year increase compared to the entire 2024. While funding amounts remain modest, they reflect strong momentum in a sector that is just beginning to scale,” Rohan Agarwal wrote in the report.
Highlighting that Surat has established itself as the global leader in LGD manufacturing, the report added that in 2023, the city also inaugurated the world’s largest jewellery and diamond business center, Surat Diamond Bourse, built up over 6.6 million square feet of area, encompassing 4,500 offices for national and international traders.
As far as the LGD industry is concerned, the report stated that it is gaining ground over its natural counterparts. It is expected to make up around 16 per cent of the global diamond market by 2029, up from around 12 per cent in 2024 and around nine per cent in 2019.
