New Delhi: As the Union Budget 2026 approaches, lab-grown diamond (LGD) brands and industry leaders are seeking targeted fiscal and policy measures to boost domestic adoption, strengthen export competitiveness, and position India as a global hub for sustainable fine jewellery.
Focus on cost relief and pricing competitiveness
A key demand from the industry is rationalisation of taxes and duties to ease pricing pressures and improve affordability. “At Palmonas, we see lab-grown diamonds as one of India’s biggest opportunities to lead the next global wave of fine jewellery,” said Pallavi Mohadikar, founder and CEO, Palmonas. “A reduction in import duties on key raw materials and components used in lab-grown diamond jewellery would help brands scale faster and make high-quality diamond jewellery more accessible to Indian consumers.”
She further added that a GST reduction or simplification for LGD jewellery could significantly accelerate adoption, especially among younger buyers who are choosing diamonds for everyday wear, not just for investment.
Rupesh Jain, founder, Lucira, also called for “reduction in GST and import duty on gold to ease pricing pressure,” along with measures such as “increase in cash purchase limits to support consumer demand.”
Dr. Puneet Mansukhani, partner and head – Retail and head – global retail – digital and technology transformation, KPMG in India, said, “Concessional GST rate specifically for lab-grown diamonds, with clear differentiation from natural diamonds would reduce price friction and boost domestic adoption.”
Strengthening manufacturing, quality and supply chains
Industry leaders are also seeking policy support to strengthen domestic manufacturing and improve quality standards across the LGD value chain. Lisa Mukhedkar, founder and CEO, Aukera, highlighted the need to introduce a barrier to entry on poor quality roughs from China, citing concerns around quality and market credibility.
Mansukhani said continued duty-free imports of lab-grown diamond seed materials would significantly enhance India’s price stand, boost manufacturing capacity, and strengthen its foothold in key global markets like the U.S. and Europe.
The Gem & Jewellery Export Promotion Council (GJEPC) has also recommended extending the duty exemption on imported LGD seeds beyond March 2026, noting the industry’s dependence on high-quality imported seeds for consistency and yield.
Boosting exports and improving access to capital
Improving export competitiveness and easing access to finance remain central to the industry’s pre-Budget agenda. Jain called for easier credit access for MSME jewellers to strengthen exports, simpler and more accessible gold loans and EMI options for buyers, and the establishment of a bullion bank to improve gold supply and liquidity.
Mansukhani added that value-based export incentives and faster refunds can protect margins and improve global competitiveness, while calling for reforms to simplify customs procedures and SEZ operations.
Mr Kirit Bhansali, Chairman, GJEPC, said, “The global gem and jewellery trade is undergoing a major transformation. With high U.S. tariffs, evolving consumer preferences, and shifting global supply chains, India must maintain its competitive edge.”
“Our pre-budget proposals are focused on making Indian exports more cost-efficient, strengthening SEZ operations, and improving policy frameworks that encourage investment and skill development,” he said.
Building a long-term LGD ecosystem
Beyond near-term relief, industry leaders are urging the government to invest in long-term ecosystem development to secure India’s leadership in the global LGD market.
“India should take long-term steps such as incentivising domestic LGD jewellery manufacturing, supporting export-focused ecosystems, and investing in certification and global trust frameworks. LGDs are not just a trend, they are the future of sustainable fine jewellery,” Mohadikar said.
Mansukhani added, “These measures could accelerate India’s transition from an established diamond-polishing hub to a frontrunner in the global lab-grown diamond ecosystem, driving innovation, investment, and high-value job creation.”
GJEPC said extending seed import exemptions would promote higher domestic production, enhance employment opportunities, and help India retain its leadership position in the rapidly expanding global LGD market.
