In Ayodhya, far from India’s traditional diamond hubs, shoppers are buying lab-grown diamonds without hesitation — a trend Surat-based Greenlab Diamonds says reflects rising consumer awareness, just as the Bureau of Indian Standards (BIS) rolls out mandatory disclosure norms to bring clarity and trust to the fast-evolving market.
For Greenlab, the impact is already visible on the ground: a six-month-old store in the temple town is clocking ₹30–40 lakh in monthly sales, showing how lab-grown diamonds are finding eager buyers beyond India’s metros. Industry players say the BIS notification is set to significantly enhance transparency and build consumer trust, especially as lab-grown stones — priced nearly 90 per cent lower than natural diamonds — gain wider acceptance. Mandatory disclosure across invoices, exports, and advertising is expected to curb mis-selling, clearly distinguish lab-grown diamonds from natural ones, and weed out unscrupulous players, while supporting rising demand in smaller cities.
Greenlab believes the certification will strengthen confidence in the segment, even as consumer acceptance has reached a stage where education is no longer a barrier. “Six months ago we launched a retail store in Ayodhya. We launched it after a two-month trial and since then we have been crossing ₹30–40 lakh in lab grown diamond sales every month and, that too in a store which is not even 800 square feet. People are coming in to buy diamonds in small cities, and we no longer need to explain to them what a lab-grown diamond is,” Sanket Patel, Director (R&D and Marketing), Greenlab Diamonds, told businessline.
The BIS’ new diamond disclosure standard requires jewellers and retailers to clearly distinguish laboratory-grown diamonds from natural diamonds at every stage of sale — including invoices, certificates, marketing material and consumer communication. Under the rules, only natural stones can be referred to simply as “diamonds,” while lab-grown stones must be disclosed using the full terms “laboratory-grown diamond” or “laboratory-created diamond,” along with details of the production method such as CVD (Chemical Vapour Deposition) or HPHT (High Pressure High Temperature).
The company said it has operated with full transparency since 2017, when it exited the natural diamond business to focus entirely on lab-grown diamonds. According to Greenlab, clear disclosure and traceability have helped build consumer trust well ahead of regulatory intervention. “We have always been open about it. We were never hiding and selling the stone. We are also giving a certification from IGI (International Gemological Institute) for the diamonds sold by us. In the last three years we have not only become the largest exporter of laboratory-grown diamonds, we have also launched six retail stores for selling these diamonds in the domestic market, including Surat, Jaipur, Ayodhya, Hyderabad, Delhi and Bengaluru,” Patel added. With demand now expanding rapidly beyond metros, Greenlab expects formal BIS standards to accelerate adoption rather than disrupt the market. The company is looking to scale its retail presence further, confident that consumer awareness and acceptance of lab-grown diamonds are already firmly in place.
Industry experts point out that laboratory-grown diamonds are priced nearly 90 per cent lower than natural diamonds at the retail level, making them significantly more affordable and appealing to younger and first-time buyers. On the export front, both natural and laboratory-grown diamonds faced headwinds this year amid a global slowdown.
According to provisional data from the Gems & Jewellery Export Promotion Council (GJEPC), exports of cut and polished natural diamonds fell 7.8 per cent year-on-year during April–December 2025, while exports of polished laboratory-grown diamonds declined 10.3 per cent over the same period.
Surat-based Gautam Kanani, who runs an online platform — Pure Light Diamond — that sells both laboratory grown diamonds as well as natural diamonds from suppliers to B2B and B2C clients, says the BIS notification is yet to be implemented on ground, but will go a long way in creating awareness among consumers and weeding out players from the market who used to mis-sell laboratory grown diamonds as natural diamonds.
“Lab-grown diamonds are 90 per cent cheaper than natural diamonds, so there is a high possibility of lab-grown diamonds being misrepresented and sold as natural diamonds. With the recent BIS notification, sellers have to clarify in their invoice — if you are exporting or selling locally — or while advertising if the product is a natural diamond or a laboratory-grown diamond. This, I believe, will bring in greater transparency in the market and among customers. It will weed out unscrupulous elements from the market,” Kanani added.
Similar sentiments were expressed by N Anantha Padmanabhan, managing director of Chennai-based NAC Jewellers. “It will help increase the sales of diamonds,” he said. On the other hand, NAC Jewellers does not have a problem in selling lab-grown diamonds. “We have already been selling it as grown diamonds, drawing a clear distinction,” Padmanabhan added.
Parag Shah, CEO of KISNA Diamond and Gold Jewellery—the flagship natural diamond and jewellery brand of Hari Krishna Group says, “The BIS guideline brings much-needed clarity to how diamonds are represented in the market and in their marketing as well. When a product is labeled simply as a ‘diamond,’ consumers naturally associate it with rarity, legacy and long-term value. Natural diamonds are more than a commodity, they carry emotional, historical value and market-linked price appreciation, along with strong liquidity, including up to 90% buyback at prevailing rates. Lab-grown diamonds serve a different purpose and value expectation, and that distinction must be clearly communicated. Transparent disclosure ensures consumers know exactly what they are buying, protects trust at the point of purchase, and allows both categories to grow on honest and well-defined terms.”
(Input from Subramani Ra Mancombu in Chennai)
Published on January 26, 2026
