Surat: The decade-long slide in lab-grown diamond (LGD) prices appears to have paused, with export data for the first two months of the current financial year indicating an improvement in per-carat values.After averaging around $60 per carat in 2025-26, polished LGD exports in April and May this year fetched nearly $69 per carat, raising hopes of a turnaround in the sector.Industry experts attribute the improvement to better market conditions and a higher share of quality polished LGDs in exports.The uptick has surprised many in the trade, especially as the global gem and jewellery industry continues to grapple with economic uncertainty, geopolitical tensions and ongoing conflicts in several regions.Export data shows that India shipped 15.29 million carats of polished LGDs worth $1.267 million in 2024-25. In 2025-26, export volumes rose sharply to 18.8 million carats, though the total value declined to $1.133 billion due to falling prices.The average export value per carat dropped from about $83 in 2024-25 to $60 in 2025-26.The decline has been steep over the past decade. The average export value of polished LGDs has fallen consistently from $246 per carat in 2016-17 to $60 in 2025-26.Despite the fall in prices, LGDs continue to gain market share. In a significant milestone, polished LGD exports surpassed cut-and-polished diamond exports by volume for the first time. While cut-and-polished diamond exports stood at around 16 million carats in 2025-26, polished LGD exports reached 18.8 million carats.The positive trend has continued into the current fiscal year. Polished LGD exports increased 1.98% to $194.78 million during April-May 2026, compared to $190.99 million during the same period last year. The growth came in both value and volume terms despite an unfavourable global geopolitical environment. “Despite global market disruptions, growth in LGD exports is a positive sign and reflects the strength of the product. The market will improve further once wars and conflicts subside,” said Dinesh Navadiya, chairman of the Indian Diamond Institute (IDI).Navadiya added that Gulf countries remain a crucial market for Indian jewellery exports and trade is expected to rebound strongly once regional tensions ease.Industry insiders say demand for polished LGDs is rising among jewellery manufacturers in both domestic and overseas markets.While falling prices had become a concern for producers, the recent combination of higher volumes and improving values is boosting confidence across the manufacturing sector.“There is strong demand from jewellery manufacturers in several countries. Because LGDs are affordable, consumers are increasingly buying more than one diamond. The segment is also opening up new markets where demand for diamond jewellery was previously limited,” said Babu Vaghani, president of the LGD Association, Surat.
