India’s diamond industry is undergoing a significant transformation. The government has now made it clear that the word ‘diamond’ can be used only for natural diamonds. As lab-grown diamonds gained popularity and international tariff pressures intensified, consumer confusion grew rapidly. In this environment, India, the world’s largest polished diamond processing hub has taken an important step toward transparency and standardisation.
Let’s understand what is happening inside India’s diamond industry and what new rules the government has introduced.
What’s Happening?
The Bureau of Indian Standards (BIS) has issued a new standard, IS 19469:2025, which legally defines a diamond as a naturally formed carbon crystal. Lab-grown diamonds can no longer be called diamonds. They must be sold with their own explicit identity, labels, and disclosures.
Under the new rules, all retailers from jewellery stores to e-commerce platforms must clearly disclose whether a product is a natural diamond or a lab-grown diamond. Mislabeling, misleading advertising, or unclear selling practices will now face strict action.
The government believes this step will eliminate consumer confusion and establish a transparent, standardised structure across the industry.
What Do the New Diamond Rules Change for Consumers?
According to the new standard, the word ‘diamond’ will now refer exclusively to natural diamonds. You can use terms like ‘natural’, ‘real’, or ‘genuine’, but they all refer to a natural diamond.
For lab-grown diamonds, the rules are even more precise. They must always be disclosed using the full terms ‘laboratory-grown diamond’ or ‘laboratory-created diamond’. Short forms such as LGD, lab-grown, or lab-diamond are no longer permitted.
Misleading words like ‘nature’s’, ‘pure’, ’earth-friendly’, or ‘cultured’ are strictly banned for lab-grown diamonds.
Shifting Landscape of India’s Diamond Industry
India has long been the heartbeat of the global diamond trade, processing around 90% of the world’s polished diamonds by volume. But the natural diamond segment is under pressure. In FY25, exports of cut and polished diamonds fell 17% to $13.3 billion due to global uncertainties and shifting consumer preferences.
Amid this downturn, India has redirected its polishing ecosystem. The country is rapidly becoming a major global hub for lab-grown diamonds. By FY24, India had imported over $1 billion worth of rough lab-grown diamonds, giving strong momentum to domestic cutting factories.
The domestic lab-grown diamond market is also expanding quickly. In 2024, it was valued at $300–350 million, with expectations of 15% annual growth in the coming years.
What Does This Mean for Investors?
The surge in lab-grown diamond demand has reshaped the entire retail landscape. Companies that once stayed away from synthetics are now aggressively entering an important signal for investors.
The Tata Group’s Titan Co. Ltd (Tanishq), known for its strong support of natural diamonds, launched its first lab-grown brand ‘beYon’ in late 2025. Another Tata company, Trent Ltd., which operates Zudio and Westside, has entered the market with its new brand ‘Pome’.
Emerging players like Limelight Diamonds and Greenlab Diamonds & Exports are expanding rapidly, indicating strong industry momentum. These shifts will influence diamond retailers, jewellery manufacturers, testing labs, and global trade networks making lab-grown diamonds a rising investment theme.
What’s Next?
According to Moneycontrol, India’s jewellery industry has widely welcomed the new BIS rules, saying transparency and trust form the foundation of the business, and this move strengthens consumer confidence.
But challenges remain. The biggest pressure is coming from the United States. In August 2025, the US imposed a 50% tariff on Indian gems and jewellery. As a result, exports fell by more than 44% between April and December 2025, impacting jobs and wages in Surat, the world’s largest diamond polishing hub.
In response, exporters are turning toward the UAE and Hong Kong, where free trade agreements helped exports rise by about 28%.
Against this backdrop, India’s new diamond rules aim to protect the premium identity of natural diamonds while bringing strict clarity to the synthetic segment ensuring the industry remains transparent, resilient, and globally competitive.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
