KOLKATA: Lab-grown diamonds (LGDs) are moving beyond India’s metros, gaining traction in tier-2 and tier-3 cities as a widening price gap with natural stones and rising gold prices push aspirational consumers toward more affordable jewellery.
The price discount on LGDs against natural diamonds has widened to as much as 90% this year from about 70% in 2025. A carat of premium-quality LGD now costs about Rs 50,000-80,000, compared with Rs 2.0-3.5 lakh for a carat of natural diamond.
LGDs account for nearly 10% of India’s ?80,000 crore diamond market, industry executives said.
“Awareness for LGD has already been created,” said Lisa Mugdhekar, founder of Bengaluru-based LGD brand Aukera, which has 35 stores within its fold. “North India and South India are the front runners in opting LGD and it is picking up in West India too. And consumers of 25-45 years are the major buyers.”
The shift is particularly visible in tier-2 and emerging markets, where aspirational consumers are increasingly looking for premium jewellery that offers greater value and design flexibility.
Pooja Madhavan, founder and managing director of Limelight Lab Grown Diamonds, said the adoption of LGDs is moving well beyond metros, with tier-2 and emerging markets becoming important growth drivers. “The sharp rise in gold prices has further encouraged consumers to evaluate their jewellery purchases more thoughtfully, particularly when it comes to getting the right balance of size, design and price,” she said.
Madhavan said the shift is broader than just a price-led phenomenon and is being driven by greater awareness, improved accessibility, evolving attitudes towards luxury and younger consumers being more open to new-age categories.
The trend mirrors a significant shift in the US, the world’s largest diamond consumer market, where lab-grown stones have moved from being a niche alternative to becoming mainstream in engagement jewellery. The growing popularity there, driven by affordability and the ability to buy larger stones for the same budget, offers a glimpse into the potential trajectory of the category in India.
India has also emerged as a major manufacturing hub for LGDs and now produces around 20 million carats annually, giving domestic jewellers a growing supply base as demand expands.
“We’re seeing good acceptance of lab-grown diamonds across tier-2 and tier-3 cities as well. As consumers become more informed and understand that LGDs offer the same physical, chemical and optical characteristics as natural diamonds, the value proposition becomes increasingly compelling,” said Vaibhav Karnavat, founder of Mumbai-based LGD brand House of Quadri.
According to Karnavat, a two-carat lab-grown solitaire can currently be 80-90% more affordable than a comparable natural diamond, depending on specifications and quality. While the gap could narrow if natural diamond prices decline further, LGDs are likely to retain a strong value advantage, supported by technological advancements and improving production efficiencies.
Demand is gaining momentum across North, West and South India, with Pune, Indore, Jaipur, Lucknow, Surat, Nagpur, Hyderabad, Bengaluru and Chennai emerging as key growth markets, said Limelight’s Madhavan.
Mumbai-based Limelight now has around 80 stores in 45 cities and plans to cross 100 stores in 2026.
The category is also witnessing a shift in buying patterns.
