BIS LGD norms spark industry debate amid Global Market shift

India’s lab-grown diamond (LGD) industry is seeing heightened debate following recent norms issued by the Bureau of Indian Standards (BIS) on diamond labelling and marketing, even as the global diamond market undergoes a structural shift. The BIS guidelines aim to clearly differentiate lab-grown diamonds from natural stones and restrict potentially misleading environmental claims. Regulators have said the move is intended to improve consumer transparency and bring Indian standards closer to global practices followed in markets such as the US and Europe

However, industry voices have raised concerns that the norms could slow consumer adoption of lab-grown diamonds, particularly at a time when traditional mined diamond players are facing weak demand globally. Analysts point to softer demand conditions in key markets such as the US and China, which have impacted pricing and inventory levels across the mined diamond supply chain. Lab-grown diamonds have gained rapid acceptance in recent years, especially in the US, where they are estimated to account for 15–20 per cent of diamond jewellery sales. These stones are typically priced 60–80 per cent lower than comparable mined diamonds, making them attractive to cost-conscious and younger consumers.
India has emerged as a major manufacturing hub for lab-grown diamonds, supplying a significant share of global output and supporting thousands of jobs across cutting, polishing and advanced manufacturing. Industry experts say that as the segment grows, regulatory clarity and balanced standards will be critical to protect consumer trust while ensuring the competitiveness of India’s lab-grown diamond industry.