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ASHTH : The LGD Revolution Redefining Luxury

In a candid conversation with JewelBuzz, Kaivan Shah, founder of luxury LGD  brand Ashth, reveals how the lab-grown diamond sector is fundamentally reshaping consumer behavior, pricing dynamics, and India’s global positioning in the jewelry market.

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The New Luxury Paradigm

Kaivan challenges conventional wisdom about luxury, arguing that the industry is experiencing a tectonic shift from scarcity-based value to design-driven premiumization. “Old luxury was scarcity. New luxury is all about the new designs,” he states. “Diamond is just a medium to the artistry that we bring.”

This philosophical repositioning has significant business implications. Rather than competing on exclusivity or natural origin, lab-grown diamond brands are staking their competitive advantage on craftsmanship, innovation, and emotional resonance with consumers.

Debunking the Affordability Myth

One of the most striking revelations concerns market segmentation. Industry observers have long characterized lab-grown diamonds as products for lower-income consumers. Kaivan dismantles this narrative entirely.

“Billionaires are the first ones to actually shift themselves to the lab-grown industry,” he asserts, citing value-consciousness rather than affordability constraints as the driver. The democratization of access—where both billionaires and middle-class consumers purchase lab-grown jewelry—signals a fundamental market maturation beyond price-point positioning.

This cross-spectrum adoption validates lab-grown diamonds as a mainstream category rather than a budget alternative, with profound implications for marketing strategies and retail positioning.

The Gen Z Value Proposition

Consumer behavior analysis reveals generational fault lines. Kaivan identifies Gen Z buyers as “even more aware about the ethics, where the thing is coming from, where the diamond is sourced.” This group eschews jewelry as social signaling—a departure from previous generations who selected pieces to demonstrate status.

Instead, modern consumers prioritize personal alignment and ethical considerations. They recognize diamonds as non-investment purchases where “the only people who are making money are the person selling the diamonds, not the one who’s purchasing.”

This sophisticated buyer understanding eliminates the investment mystique that historically supported natural diamond pricing premiums, creating headwinds for traditional players while accelerating lab-grown adoption.

Design Innovation as Competitive Moat

Kaivan’s product showcase illustrates how lower price points enable unprecedented design experimentation. Examples include:

  • A 97-facet signature “Ashth cut” ring representing proprietary intellectual property
  • Detachable earrings offering multiple wearing configurations
  • Rose-cut pieces with black rhodium finishes for cocktail wear
  • Solitaire-within-solitaire conceptual designs

The affordability of larger lab-grown stones permits design complexity previously economically unfeasible with mined diamonds. This creates differentiation opportunities beyond the commodity characteristics of the stones themselves.

India’s Strategic Opportunity

Perhaps the most ambitious claim addresses India’s global positioning. Kaivan argues that India possesses the cultural richness, craftsmanship heritage, and manufacturing scale to become “the design capital of the world” in jewelry.

“We are not here just as laborers to cut the diamonds. We are here to define these diamonds and make India the capital of designing—have a Cartier, Tiffany at that level,” he contends.

This vision requires transcending India’s historical role as a low-cost manufacturing hub to establish premium design houses with global brand equity. The lab-grown sector, with its rapid growth trajectory and Indian manufacturing dominance, provides the platform for this repositioning.

Market Maturation Imperatives

Kaivan issues a call to action for industry consolidation: “It’s time we make it a little more organized. It’s time we let the world know the capabilities that we all as a combined unit bring as a force together.”

This recognition of fragmentation challenges suggests the sector remains in early-stage development despite rapid growth. Organizational maturity, collective marketing, and unified quality standards will determine whether lab-grown diamonds achieve sustained premium positioning or commoditize into a race-to-the-bottom price war.

Strategic Implications

For industry stakeholders, several strategic priorities emerge:

For Established Jewelers: The threat extends beyond pricing to fundamental value propositions. Scarcity messaging appears increasingly obsolete with value-conscious, ethically-minded consumers. Design excellence and brand storytelling become critical differentiators.

For Lab-Grown Entrants: First-mover advantages in design innovation and premium positioning remain available, but industry fragmentation poses risks. Collective action on standards and marketing may determine category-level success.

For Investors: The cross-demographic adoption pattern and manufacturing scale in India present growth opportunities, though market organization and brand differentiation will separate winners from casualties in an inevitably consolidating sector.

For Policy Makers: Supporting India’s transition from manufacturing commodity to design leadership requires investments in design education, intellectual property protection, and global brand development infrastructure.

Conclusion

The lab-grown diamond sector represents more than technological disruption or pricing arbitrage. It embodies a fundamental reconceptualization of luxury—from exclusivity to accessibility, from scarcity to creativity, from social signaling to personal expression.

Whether this revolution elevates India to global design leadership or fragments into commoditization depends on the industry’s ability to organize, innovate, and articulate a compelling value proposition beyond price. The tools are available; execution will determine outcomes.

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JB Insights

India Raises Gold, Silver Import Duty To 15% To Curb Soaring Precious Metal Import Bills and Conserve Forex

Higher Duties Could Increase Prices, Impact Exports, and Create Liquidity Pressure For MSME Manufacturers Due To Rising Working Capital Requirements

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The Finance Ministry on Wednesday raised effective import duty on gold and silver from 6% to 15% — comprising 10% basic customs duty and 5% agriculture infrastructure and development cess (AIDC) — effective 13 May 2026. The move aims to curb soaring precious metal import bills and conserve foreign exchange reserves as the West Asia crisis intensifies pressure on India’s trade balance.

Markets reacted swiftly. Titan fell as much as 1.5% on the day, extending a prior two-session decline of over 10%, while Kalyan Jewellers dropped as much as 5.9%. Gold and silver ETFs rallied sharply on expectations of higher domestic bullion prices. WGC data implies the 9-percentage-point hike could suppress annual consumer demand by roughly 57 tonnes — based on an estimate of 6.4 tonnes of demand suppression per 1% duty rise.

Industry Voices

“Higher duties could revive gold smuggling, which had eased substantially after the 2024 duty reduction. Every 1% rise in import duty reduces consumer demand by approximately 6.4 tonnes — implying the hike could suppress demand by ~57 tonnes annually.”

Prithviraj Kothari, MD, RiddiSiddhi Bullions | National President, IBJA Bullions | Chairman, JITO

“Higher duties could increase prices, impact exports, and create liquidity pressure for MSME manufacturers due to rising working capital requirements. We urge continued dialogue for balanced solutions that support both economic goals and export growth.”

Kirit Bhansali Chairman, GJEPC

“The increase in customs duty is a temporary and calibrated measure in the present economic scenario. The trade should remain calm and confident — India’s jewellery sector has always demonstrated resilience and adaptability during challenging times.”

Kirit bhansali

Rajesh Rokde Chairman, GJC

“It is important for the trade fraternity to avoid panic and continue business with confidence and responsibility. GJC fully supports the nation’s larger economic priorities and remains committed to constructive engagement with policymakers.”

Avinash Gupta Vice Chairman, GJC

“Due to the simultaneous occurrence of two events—the sudden 9% hike in import duty and statements made by PM Modi—both the jewelry industry and customers find themselves in a state of confusion. This is significantly impacting jewellers, artisans, and large factories alike.

My suggestion to everyone is to remain patient and avoid panicking. Everyone should avoid protests, shop closures, or any form of aggression. Once the government’s complete process is revealed, we can then consider all options through dialogue and discussion.”

Anurag Rastogi, North India Head – IBJA

“Business is already at nearly 50% of normal levels, and the duty increase will reduce consumption volumes further. Promoting lower caratage jewellery — 9ct, 14ct, 18ct — could make products more affordable and reduce gold usage. As an industry, we must stand with the government during this period.”

K. Srinivasan, CMD, Emerald Group

“An increase in import duty on gold typically has a direct impact on retail prices, influencing short-term consumer sentiment — especially for price-sensitive buyers. In the immediate phase, some customers may postpone discretionary purchases or wait for price stability. It can lead to a 10–15% volume decline to help control gold inflows into the country.

However, gold buying in India is deeply linked to weddings, festivals, and long-term wealth preservation, so demand is usually resilient over time.”

Suvankar Sen, MD & CEO, Senco Gold and Diamonds

“Changes in import duties on gold and silver are part of an evolving policy landscape, and the industry has consistently adapted with resilience and stability. We respect the government’s decision and recognize the broader economic considerations behind such measures.

Over the years, gold import duty has moved from 15% to 6% and now back to 15%. However, gold prices have never been driven by changes in duty alone. Global trends, rupee depreciation, and consumer demand remain key factors, while recent revisions reflect an already elevated domestic gold price environment.”

Chetan Thadeshwar, CMD – Shringar House Of Mangalsutra Ltd

“At SwarnShilp, we believe any duty increase is a reminder for the industry to become faster, more efficient, and more design-driven. Our focus remains on strong inventory planning, lightweight innovation, and timely delivery to support our customers despite market volatility.”

Surabi Karthik, President — South India Bullion Association, Secretary— Gold Bullion Association, Coimbatore

The customs duty on gold has gone up from 6% to 15%. This is not a punishment for our trade. Our Prime Minister is trying to protect India’s foreign exchange in a tough global situation — war tensions, Strait of Hormuz disruption, and rising import costs.

But we have a solution from within. India’s households hold 25,000 tonnes of gold sitting idle in lockers. Let us recycle this gold instead of importing more. Instead of borrowing working capital from foreign lenders, let us use India’s own gold through the Gold Monetization Scheme — and pay interest to our own people, not foreigners. This way, we can bring imports down from 700 tonnes to 500 tonnes — saving billions for our nation.

We are 2 crore people in this trade. We are not a burden — we are nation builders. Let us lead with pride and stand by our country in this hour. Together, we can solve this — the Indian way.

N Ananthapadmanabhan, MD, NAC Jewellers

The government’s decision to raise gold import duty from 6% to 15% is unfortunate, especially when closer to 30,000 tonnes of gold remain idle in Indian households. At GJC, we have long urged stronger implementation of the Gold Monetization Scheme by appointing jewellers as collection and mobilization agents, since they can connect with consumers more effectively than banks.

We have also proposed allowing every Indian woman to bring in up to 500 grams of gold without extensive KYC. These steps could unlock 2,000–3,000 tonnes, cut import dependence, and ease forex pressure.
The hike will impact sales in the short run, but in the long run, people have to buy for the weddings, so its impact will be minimal. This hike will encourage gold to come in unofficially to a great extent, which is detrimental, and will encourage hawala transactions to a great extent, contributing to a rise in tension in our country.

Shreyans Kothari, Gen. Secretary MWGJA

“While we support the government’s vision to strengthen the economy and manage imports, it is equally important to safeguard the interests of the jewellery industry, which supports millions of livelihoods across the country. A balanced and practical approach will help both the nation and the trade grow together.”

Khushboo Ranawat, Director – SwarnShilp Chains & Jewellers Pvt Ltd

Industry Proposals

Lower caratage push
Promote 9K, 14K & 18K jewellery to cut gold consumption and keep prices within reach

Revamp GMS
Overhaul the Gold Monetization Scheme through jeweller networks to mobilize idle household gold

Old Gold Exchange
Scale consumer recycling programmes to reduce dependency on fresh bullion imports

Risks to watch out for

Dubai/CEPA arbitrage — GTRI warns that the India–UAE CEPA could make UAE-routed imports cheaper, partially neutralizing the duty’s intent

Smuggling revival — duty spikes above 10% have historically correlated with the resurgence of grey-market gold flows into India

Export competitiveness — higher landed costs raise working capital requirements for MSME exporters and could weigh on jewellery export volumes

– Raghav Dhir, Founder & MD, Dhirsons Jewellers, Dhiraj Dhir Group, Lajpat Nagar

“The revision in import duty is a significant policy shift, and while it will inevitably push up costs across the supply chain, it also presents a timely opportunity for consumers to rethink how they engage with gold. We strongly encourage our customers to bring in their old gold and exchange it for new jewellery.

This is one of the smartest ways to stay ahead of rising prices while refreshing your collection. At the same time, we believe this is the right moment for the industry and the government to come together and formalize a robust gold monetization scheme. India holds an estimated 25,000 tonnes of gold sitting idle in homes. Unlocking even a fraction of that through a credible, consumer-friendly programme would reduce our dependence on imports, ease forex pressure, and fuel domestic trade in a meaningful way. The policy intent is clear; what we need now is a structured mechanism that gives consumers the confidence to participate.”

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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