India is rapidly emerging as a significant source of global lab-grown diamonds, as demand continues to surge and the government provides strong support. With an emphasis on innovation and sustainability, the Indian government has introduced various policies, trade advantages, and budget initiatives to spur the lab-grown diamond business. In this article, we explored how these steps are working together to change the future of lab-grown diamonds in India, grow exports, and make India the leading producer of ethical and sustainable gemstones.
Why Do Lab-Grown Diamonds In India Really Matter?
Lab-grown diamonds (LGDs) are not a passing trend in India; rather, they signify a genuine shift in consumer expectations and market dynamics.
While mined diamonds are dug out of the ground, these diamonds are produced in laboratories through advanced processes like Chemical Vapour Deposition (CVD). They're free of conflict, green, and much cheaper, so consumers can get a smarter, more compassionate option.
India's gem and jewellery business employs more than 5 million people and contributes an astounding 7% of the country's GDP. Strengthening the LGD sector provides interesting challenges, like:
- Understanding new global markets
- Creating high-tech, skilled employment
- Investing in green technologies sustainably
-
"Mitigating" environmental degradation
How The Indian Government Is Supporting Lab-Grown Diamonds
Following the increasing demand for sustainable luxury, the Indian government has taken impactful measures to promote the lab-grown diamond sector.
Here's how:
1. Union Budget 2023–24: Scaling Up Production
In a major pronouncement in the Union Budget 2023 - 24, Finance Minister Nirmala Sitharaman declared that lab-grown diamonds will be treated as a "sunrise industry."
The budget even allocated research and development funds to top institutions like the IITs to further develop and hone LGD production technologies. Objective? Develop reductions in the dependency on foreign sources to acquire diamond seeds and advance in India's self-sufficiency in mining diamonds, grounded in domestic sources.
2. Duty-Free Imports of LGD Seed Materials
To allow local manufacturers to address and reduce their production costs, the national government has exempted customs duties on the import of LGD seed materials. This measure makes Indian manufacturers more price-competitive globally, specifically in price-sensitive foreign markets.
3. PLI Scheme Coverage (Planned)
While not yet announced, there is a strong industry push to include lab-created diamonds under the Production Linked Incentive (PLI) scheme.
If authorised, this will increase export capacity and attract large-scale investment, making India a global leader in LGD.
4. Assisting LGD Exports to go Global
The government is taking additional steps to promote Indian LGDs in international markets outside of India, such as the United States and Europe, by establishing organisations such as the Gems and Jewellery Export Promotion Council (GJEPC).
The Above Assistance Includes:
- Subsidies to facilitate Indian participation in trade fairs
- Changing export duties
- More robust certification and labelling processes
- As a result, there has been some considerable good in terms of the ability to build trust and recognition of Indian LGD brands globally.
India's Role in the Global LGD Market
India is already the global leader in the cut and polished diamond trade, and now it's in top gear to become one with man-made stones too.
With thousands of people working in gleaming factories, Surat and Mumbai have grown into major hubs for the manufacture of LGD. At the same time, customers everywhere, especially the green-conscious ones, are starting to favor Indian LGDs for their clean sheen and eco-sustainable source.
How Government Support Is Driving the LGD Sector
Here's a summary of how several government programs are actively supporting the LGD sector:
- Government Program Industry Result
- A bigger R&D budget stimulates creativity, doubling the output.
- Duty-Free Imports of LGD Seeds Decrease production cost, increase margins
- GJEPC Export Initiatives Create larger orders by connecting to overseas buyers
- MSME Support - develops small-scale makers
- Proposed PLI Inclusion Encourages larger investments and expansion
Looking to the Future: India’s Vision to Grow Lab-Grown Diamonds
With the country’s friendly policies and growing demand in the sector, India has set its lofty and high goals:
- To be a world export hub for lab-grown diamonds
- To be a leader in developing indigenous technology for LGD seed making
- To foster the eco-luxury jewellery market
- To make investments in gem science research and talent development
- These initiatives are well-aligned with the government’s broader Make in India vision and transition to cleaner, greener industries.
Final Thoughts
A brighter future than ever is ahead for lab-grown diamonds in India. With budgetary support, policy adjustments, and exports, the government is helping India's transition to becoming a front-runner in sustainable luxury. For jewellers, for consumers, for investors, this is the time of grand excitement. Lab-grown diamonds have transformed from a scientific wonder to a business opportunity to a concept of responsible luxury.
India is set to sparkle and shine, not only in scientific laboratories, but also on the global scene for jewellery. Scene platform.
FAQ:
1. What are lab-grown diamonds (LGDs)?
Lab-grown diamonds are diamonds created using cutting-edge technology in a lab setting using methods like HPHT or CVD (Chemical Vapor Deposition). It has the same physical and chemical characteristics as diamonds that are mined.
2. Why is lab-grown diamond acceptable to Indian governments?
To encourage sustainable and responsible sourcing of jewelry, decrease dependency on foreign material, boost export levels, and create high-tech employment opportunities in manufacturing.
3. What was the Union Budget 2023 - 24 announcement on LGDs?
The government announced the LGDs as a sunrise sector and funded R&D values in IITs to develop indigenous technologies for LGD manufacturing.
4. Are lab-grown diamond producers granted any tax concessions?
Yes, in order to bring down production costs and to aid in the competitiveness that exists globally, the government has granted an exemption from customs duties on LGD seeds.
5. Is there assistance for the export of LGD jewelry from India?
Yes, through the GJEPC, the government is helping exporters with export duty rationalization, source improvement certifications, and subsidized trade fairs.