India seeks to develop production of lab-grown diamonds

Image credit: OpenClipart-Vectors (Pixabay) India has doubled the base customs duty on imports of lab-grown polished diamonds in an effort to protect and develop its own production of such goods.
“The domestic lab-grown diamond or synthetic diamond industry is set to get a major boost with the union finance minister Nirmala Sitharaman increasing the basic customs duty (BCD) on the import of cut and polished synthetic diamonds from 7.5% to 15%,” the Times of India reported on Tuesday.
The suspension of international traffic caused by the COVID-19 pandemic resulted in a shortage of natural diamonds in world markets, the newspaper said, which began to be replenished through the production of synthetic diamonds, including the domestic market in India. According to industry sources, about 95% of the lab-grown diamonds manufactured in Surat are exported to the United States, and these stones are 60% cheaper than the natural gems.
Shashikant Shah, Chairman of the Lab-grown Diamond and Jewellery Promotion Council (LGDJPC), told the Times of India that “the increase in the customs duty on synthetic cut and polished diamonds is going to boost the domestic lab-grown diamond manufacturing.” At the same time, he noted that the annual import of lab-grown polished diamonds to India reaches about 5 billion rupees (about US$ 70 million).

Vladimir Malakhov, Rough&Polished