The lab-grown diamond (LGD) industry has emerged as one of the most transformative segments within India’s gems and jewellery sector. With advances in Chemical Vapor Deposition (CVD) and High-Pressure High-Temperature (HPHT) technologies, India has rapidly positioned itself as a global hub for lab-grown diamond manufacturing, processing, and exports. This paper examines the economic role of the Indian lab-grown diamond industry through an in-depth analysis of its contribution to GDP, exports, employment generation, technological innovation, sustainability, and regional development, with a special focus on Surat, Gujarat. Using a descriptive and analytical research methodology based on secondary data from government publications, industry reports, trade bodies, and academic studies, the research highlights both the growth potential and structural challenges of the sector. The study finds that while the LGD industry significantly strengthens India’s export competitiveness and aligns with sustainability goals, it also faces issues related to price volatility, labour displacement, skill transition, and global competition. Policy recommendations are proposed to ensure inclusive and sustainable growth of the industry within the Indian economy.
Gautamkumar P. Kanani (Fri,) studied this question.