GJEPC provisional figures show natural and lab grown diamond exports both dropped in FY24

The Gem and Jewellery Export Promotion Council’s provisional figures for the 2024 financial year show that both natural and lab grown diamond exports dropped during the year until February. Although natural diamond exports declined at a higher rate than lab grown diamonds, many established Indian jewellery businesses are wary of embracing lab grown gemstones. 

The GJEPC’s provisional figures show that cut and polished diamonds saw their exports drop by 28% from April 2023 to February 2024, ET Retail reported. Lab grown diamonds saw their exports total $1.28 billion, representing a year-on-year decrease of 18.5%. 
 
There has been a global increase in demand for lab grown diamonds. Reasons for the trend include international sanctions on Russian natural diamonds in the context of the Russia- Ukraine war and interest rates reducing consumer spending power. As lab grown diamonds are cheaper than their natural counterparts, they have become a popular option for shoppers. 

However, natural diamonds are still proving popular in the Indian market. Many lab grown diamond businesses have launched and are enjoying sales growth, such as Limelight Diamonds, but many of the country’s established fine jewellery businesses remain sceptical of lab grown diamonds. 
 
The far cheaper price of lab grown diamonds has made the category popular with new entrants. “Even with this price difference, there’s hardly any demand from our customers,” said Senco Gold and Diamonds’ chief executive Suvankar Sen, the Economic Times reported. “Consumers are not asking for LGDs at our stores. We are still not witnessing any craze.”