According to Indian G&J industry sources, while the Union Budget 2023-24 support to the LGD sector may not have any big impact on the country's overall gems and jewellery exports, it could be a decision to tap an opportunity of the future.
India's Finance Minister, who also decreased import duty on LGDs to nil from 5% to reduce the cost of production said: "To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant will be provided to one of the IITs for five years."
India is a global leader in cutting and polishing natural diamonds contributing about three-fourths of the global turnover by value, and LGD is now a very small but growing segment.
However, with the depletion in deposits of natural diamonds, the industry world over is moving towards LGDs and it holds huge promise for the future. Exporters also feel diamond-cutting hubs like Surat can become one of the leading manufacturing centers in the world for LGDs.
Another factor for the shift to LGD is that many customers feel some natural diamonds mined from some of the African countries and other parts of the world are directly or indirectly associated with 'blood money,' linked to terrorism, drugs and smuggling.
India's Finance Minister, who also decreased import duty on LGDs to nil from 5% to reduce the cost of production said: "To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant will be provided to one of the IITs for five years."
India is a global leader in cutting and polishing natural diamonds contributing about three-fourths of the global turnover by value, and LGD is now a very small but growing segment.
However, with the depletion in deposits of natural diamonds, the industry world over is moving towards LGDs and it holds huge promise for the future. Exporters also feel diamond-cutting hubs like Surat can become one of the leading manufacturing centers in the world for LGDs.
Another factor for the shift to LGD is that many customers feel some natural diamonds mined from some of the African countries and other parts of the world are directly or indirectly associated with 'blood money,' linked to terrorism, drugs and smuggling.
Cost is another reason why LGD is gaining popularity as many youngsters see it as a replacement for very costly natural diamonds. The cost of production of lab diamonds has been reduced by 90% in the last decade due to the advancement of technology. Now the cost of a lab-grown diamond can be 30-50% cheaper than natural diamonds according to its finish and quality.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
