New Delhi, Apr 21 (KNN) India’s lab-grown diamonds (LGDs) segment are rapidly emerging as a significant growth driver, currently valued at USD 345 million and expected to reach USD 1.2 billion by 2033 at a CAGR of 15 per cent, according to a report by 1Lattice.
The report puts gems and jewellery industry is on a strong growth trajectory, projected to expand from USD 83 billion in 2024 to USD 128 billion by 2029.
This represents a compound annual growth rate (CAGR) of 9.5 per cent. Gold continues to dominate the market, accounting for 86 per cent of the sector’s value.
The sector’s expansion is being fuelled by several key factors. The rise in disposable income among India’s growing middle class is playing a pivotal role in boosting demand for both luxury and investment-grade jewellery.
This economic shift is enabling more consumers to explore higher-value purchases, contributing directly to the industry’s growth.
Another major contributor is the increasing presence of organised retail. Consumers are gravitating towards branded and certified jewellery, which offers greater assurance of quality and authenticity.
This trend is not only strengthening consumer trust but also encouraging repeat purchases from established players in the market.
Digital transformation is further reshaping the sector. With e-commerce platforms, virtual try-ons, and AI-driven personalisation gaining traction, online jewellery sales are projected to account for 10 per cent of the total market.
These technological advancements are enhancing customer convenience and broadening market access.
Government support is also playing a crucial role. Measures such as a 5 per cent duty reduction on LGD seeds and a USD 30 million research grant are aimed at strengthening domestic manufacturing.
Ashish Dhir, Senior Director at 1Lattice, noted that the fusion of heritage and innovation is redefining India’s jewellery market.
While the report also highlights potential applications of LGDs in high-tech industries, it points to the absence of domestic HPHT machine fabrication as an area ripe for investment.
(KNN Bureau)
