Changing buyer preferences and gold price trends spark growing demand for sustainable, design-led jewellery this Akshaya Tritiya.

Festive jewellery shopping is evolving, and Akoirah by Augmont is at the forefront of this shift. Based in Pune, the lab-grown diamond brand is seeing increased interest this Akshaya Tritiya, particularly among younger buyers who are moving away from conventional gold in favour of affordable, stylish, and sustainable choices.

Namita Kothari, Founder of Akoirah, highlighted this changing trend: “While gold remains a staple for traditional buyers, lab-grown diamond jewellery is gaining strong traction — especially among those seeking modern, meaningful designs.” The rise in gold prices has also influenced purchasing behaviour, with many consumers choosing to diversify their budgets between smaller gold purchases and diamond jewellery that offers better design and value.

Responding to this shift, Akoirah has launched a festive offer, giving customers a chance to purchase up to 10 grams of gold at the lowest price of the month with every jewellery buy. This move aims to support customers amidst price fluctuations, while allowing them to celebrate the auspicious occasion in a meaningful way.

Known for blending sleek aesthetics with ethical practices, Akoirah’s offerings resonate with a new generation of conscious buyers. As Akshaya Tritiya continues to be a key moment for jewellery purchases, the brand is redefining how customers engage with tradition — through pieces that honour values and style alike.

GJEPC participated in a high-level meeting chaired by Hon’ble Union Minister of Commerce & Industry, Shri Piyush Goyal, alongside Mr. Al Cook, CEO of De Beers Group in London on 28 April. The GJEPC was represented by Chairman Mr. Kirit Bhansali and Executive Director Mr. Sabyasachi Ray.

The meeting covered a wide spectrum of critical issues affecting the diamond and jewellery industry, including the impact of recent US tariffs, implementation of node and traceability measures aligned with upcoming G7 sanctions on Russian diamonds, and De Beers’ plans to conduct auctions at Special Notified Zones (SNZs) in Surat and Mumbai. The company’s prospective investment plans in india, particularly in the retail segment, were also discussed.

Shri Goyal expressed appreciation for De Beers intent to invest in India’s retail sector and conveyed confidence in a positive outcome in ongoing negotiations with the US regarding reciprocal tariffs. He also urged De Beers to support India as a potential node in the event that G7 sanctions on Russian diamonds are implemented from January 2026. Furthermore, the Minister proposed that De Beers install detection machines in all Indian retail jewellery stores to help consumers clearly distinguish between lab-grown diamonds (LGDs) and natural diamonds at the point of purchase.

The 10% additional tariff levied by the US, which accounts for nearly a third of Indian natural diamond exports, will exacerbate the impact on Indian diamantaires from already-subdued demand and intensifying competition from lab-grown diamonds (LGDs), which closely resemble natural diamonds and cost much less. In the milieu, export revenues of diamantaires will decline ~8-10% in fiscal 2026.

That said, calibrated inventory management across the value chain will support realisations, thus helping reduce the decline in export revenues, and limit the erosion of operating margins, helping contain the players’ financial leverage and credit metrics.

A Crisil Ratings analysis of 43 diamantaires, accounting for nearly one-fourth of the industry revenues, indicates as much.

In fiscal 2025, the export volumes of natural diamonds remained constrained by lower demand from China and competition from LGD in the US. Although polishers pushed sales in the fourth quarter to avoid tariffs and price erosion was limited, revenues from natural diamond exports fell 17% to ~$13.3 billion.

Says Rahul Guha, Senior Director, Crisil Ratings, “This fiscal, realisations on natural diamonds are poised to rebound 3-4% amid limited inventory across the value chain as diamantaires are aligning their rough purchases with visibility in sales of polished diamonds. Additionally, production cuts by miners will curtail price erosion. This contrasts with LGD, whose prices may reduce from a tenth of the price of natural diamonds last fiscal to a twelfth in the current fiscal, resulting in a wider price gap between natural diamonds and LGD.”

The rising price gap, in turn, could shave a further 12-14% off natural diamond export volumes, marking a third consecutive year of weak demand after an aggregate degrowth of 32% in the last two fiscals. That will make it difficult for the natural diamond polishers to pass on any tariff-led price hikes to customers. For the record, India will remain the primary port of call for polishing diamonds.

Says Himank Sharma, Director, Crisil Ratings, “Natural diamond polishers, traditionally operating at thin margins of 4-5%, will have limited ability to absorb the tariff-induced price rise. As a result, miners and retailers may need to step in to absorb some of the price shocks. Consequently, we believe the operating margins of polishers may dip 20-30 basis points to 4.3-4.5% this fiscal.”

Credit profiles of diamantaires might witness some working capital respite as weak demand will lead to a further 5-7% cut in inventory levels across the value chain (after a 10-15% decline last fiscal). This will limit the need for debt-funded working capital, although receivables from export customers will remain monitorable amid tepid demand, geopolitical issues and global uncertainties.

As a result, diamantaires’ financial leverage – total outside liabilities to adjusted networth – and interest coverage will remain rangebound at ~0.8 time and ~2.5 times, respectively, this fiscal.

All said, slowing demand for natural diamonds in key geographies, intensifying competition from LGDs, potential revisions in tariffs and rising geopolitical tensions will bear watching.