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India has defined a “diamond” amid a surge in lab-grown alternatives, even as 50% US tariff weighs on the wider gems & jewellery industry.
The Bureau of Indian Standards has enforced a new terminology framework under which “diamond” is now legally reserved for natural, mined stones. The new BIS standard (IS19469:2025) mandates that all man-made stones be explicitly labelled as “laboratory-grown” or “laboratory-created”, banning abbreviations such as ‘LGD’ or “lab-grown” in formal discussions.
The move is designed to eliminate confusion for the consumer, at a time when it's impossible to distinguish natural diamonds from lab-grown alternatives. At the same time, the standard protects the value of natural diamonds by ensuring consumers know “exactly what it is—clearly, honestly, and without confusion”, Richa Singh, MD of Natural Diamond Council, said in a statement.
India's diamond industry — natural vs lab-grown
India processes ~90% of the world’s polished diamonds by volume, making it the central artery of the global trade. But the natural segment is contracting. Exports of cut and polished diamonds fell ~17% to $13.3 billion in FY25, driven by global macroeconomic headwinds and shifting consumer preferences.
While natural diamond exports struggled, India’s prowess in polishing pivoted to lab-grown alternatives. The country has emerged as a key processing hub for synthetics, importing over $1 billion in rough LGDs by FY24 to feed its cutting factories.
Domestically, the lab-grown market is booming, valued between $300 million and $350 million in 2024, with projections suggesting a compound annual growth rate of 15%.
Who sells lab-grown diamonds in India
That outsized growth in demand has prompted retail giants to break historical resistance to enter the synthetic market.
- The Titan Co. Ltd. (Tanishq): The Tata Group-owned jeweler, traditionally a staunch defender of natural diamonds, launched its first lab-grown brand, "beYon," in late 2025.
- Trent Ltd.: Another Tata enterprise known for Zudio and Westside has entered the fray with its lab-grown brand, “Pome”.
- Limelight Diamonds: Backed by Bollywood actor Shilpa Shetty, this brand is aggressively expanding, seeking to open 100 stores.
- Greenlab Diamonds & Exports: A polishing major, Greenlab operates extensive facilities to grow diamonds domestically.
Impact of 50% US tariffs
The industry’s most immediate threat, however, comes from Washington. The US, India’s largest market for gems and jewelry, hiked tariffs on Indian goods to 50% in August 2025. The impact has been devastating:
- India's gem and jewelry exports to the US plummeted by over 44% between April and December 2025. The polishing hub of Surat has seen job loss and wage cuts.
- Exporters are pivoting to markets like the United Arab Emirates and Hong Kong, where gems & jewellery exports have risen by roughly 28%, aided by free trade agreements.
The BIS rule attempts to secure the premium status of natural diamonds amidst this volatility. By forbidding marketing terms like “nature’s” or “earth-friendly” for synthetic stones, India is drawing a hard line in the sand, even as Surat continues to polish both natural and lab-grown stones for the world.
English (US) ·