Smaller cities take a big shine to diamonds

Kolkata is witnessing a growing trend in the popularity of lab-grown diamonds (LGDs) beyond the city's metropolitan areas, as a widening price gap with natural diamonds and rising gold prices lure more budget-conscious consumers towards this alternative. The price difference between LGDs and natural diamonds has surged to as much as 90% this year, compared to around 70% in 2025. A premium-quality LGD costs approximately Rs 50,000-80,000 per carat, while a carat of natural diamond ranges from Rs 2.0-3.5 lakh.

Lisa Mugdhekar, founder of Bengaluru-based LGD brand Aukera, notes that awareness of LGDs has already been established and the trend is gaining momentum in North India, South India, and even in the West. The shift is particularly noticeable among consumers aged 25-45, who are driving demand in tier-2 and emerging markets.

Pooja Madhavan, founder and managing director of Limelight Lab Grown Diamonds, explains that the adoption of LGDs is expanding beyond metropolitan areas, with tier-2 and emerging markets becoming significant growth drivers. The surge in gold prices has encouraged consumers to make more thoughtful choices when it comes to purchasing jewellery, considering factors like size, design, and price.

This trend is not limited to India's domestic market, as it mirrors the growing popularity of lab-grown diamonds in the United States, the world's largest diamond consumer market. In the US, the affordability of lab-grown stones and the ability to purchase larger stones for the same budget have contributed to their mainstream acceptance in engagement jewellery.

India has also become a major manufacturing hub for LGDs, producing around 20 million carats annually, providing domestic jewellers with a growing supply base as demand increases. With awareness growing and consumers becoming more informed about the physical, chemical, and optical characteristics of LGDs, the value proposition becomes increasingly attractive.

According to Vaibhav Karnavat, founder of Mumbai-based LGD brand House of Quadri, a two-carat lab-grown solitaire can currently be 80-90% more affordable than a comparable natural diamond. While the price gap may narrow if natural diamond prices decline further, LGDs are expected to maintain a strong value advantage, driven by technological advancements and improving production efficiencies.