India’s gems and jewellery industry is poised for significant growth, with the market expected to expand from $83 billion in 2024 to $128 billion by 2029, reflecting a robust CAGR of 9.5%, according to a report released on Monday by 1Lattice.
While gold continues to dominate the Indian market, holding a commanding 86% share, the emerging segment of lab-grown diamonds (LGDs) is emerging as a major catalyst for growth. Currently valued at $345 million in 2024, the LGD segment is projected to grow at an impressive 15% CAGR, reaching $1.2 billion by 2033.
India’s position in the global LGD market is becoming increasingly significant, contributing 15% of global LGD production. In fact, the country has seen an 8-fold increase in LGD exports over the past four years, with exports totaling $1.3 billion in FY24.
Ashish Dhir, Senior Director at 1Lattice, notes, “India’s gems and jewellery market is evolving rapidly at the intersection of heritage and innovation. The rise of lab-grown diamonds, supported by digital commerce, affordability, and growing sustainability consciousness, is reshaping the future of jewellery retail.”
Key drivers of the market’s expansion include:
Rising disposable income within India’s middle class, boosting demand for luxury and investment-grade jewellery.
Growing consumer trust in branded and certified jewellery, driving organised retail.
The digital transformation of jewellery retail, with e-commerce, virtual try-ons, and AI-powered personalisation becoming integral. Online sales are projected to make up 10% of total jewellery sales.
As India’s jewellery market adapts to these changes, lab-grown diamonds are expected to play a pivotal role in the future of sustainable and affordable luxury.
Related topics: