India is emerging as the undisputed leader in the global lab-grown diamond (LGD) industry, further strengthening its position with lower production costs and skyrocketing output. Taking advantage of the dramatic drop in LGD prices—from $355 per carat in 2022-23 to around $179 in 2023-24—India has intensified its production efforts, while international competitors are struggling to stay afloat. As a result, several international companies, including the largest U.S. manufacturer WD LGD and De Beers, have faced bankruptcy or have been forced to shut down their operations.
India’s cost advantage in growing, cutting, polishing, and manufacturing jewelry is unmatched, allowing companies to keep their profit margins low while maintaining competitive pricing. Dinesh Navadiya, president of the Diamond Association, explains that Indian companies can survive with lower profits due to much lower production costs. However, the industry faces mounting pressure from international competition, particularly from China, which has gained ground in small-diamond production.
Despite these challenges, India’s strategic advantages—skilled labor, cost-effective operations, and robust infrastructure—have enabled the country to dominate the LGD market. The Indian Gem and Jewelry Export Promotion Council (GJEPC) and industry leaders like Vipul Shah emphasize the country’s growing presence as the world’s manufacturing hub for LGDs, with a clear focus on both domestic and global distribution.
As India continues to lead the LGD production race, experts warn that international competitors may struggle to keep up unless they adjust their business models or invest in more advanced technology. The rise of India as a center for LGD production marks a significant shift in the global diamond industry, forcing competitors to adapt or risk being left behind.