India's gems and jewellery sector plays a significant role in the Indian economy, contributing around 9% to India’s total merchandise exports. There have been several positive developments over the past decade, in the gem and jewellery sector globally, and LGD is one of them. This sector is expected to rise significantly in India in the coming years.
The government of India, in this year’s Union Budget, announced the elimination of a 5% customs duty on seeds used to manufacture rough lab-grown diamonds. It also approved a five-year research grant to the Indian Institutes of Technology, Madras, to encourage indigenous production of LGD machinery, seeds and recipes. An India Centre for lab-grown diamonds (InCent-LGD) is also proposed at IIT Madras with an estimated cost of $29.6 million over five years.
The lab-grown diamond jewellery market is expected to rise to $5 billion by 2025 and exceed $15 billion by 2035. Besides the jewellery industry, lab-grown diamonds are used in computer chips, satellites, and 5G networks as they can be used in extreme environments and have an edge over silicon-based chips. LGDs have a vast application in the field of defence, optics, jewellery, thermal and medical industries.
While lab-grown diamonds are produced through two technologies – high-pressure high temperature (HPHT) and chemical vapour deposition (CVD), India is one of the leading producers of diamonds using CVD technology.
While most of the market is deeply rooted in traditional jewellery culture, India is experiencing significant demand for new and alternative options. Also, there is rapid advancement in diamond-growing technology, resulting in the production of larger, high-quality lab-grown diamonds.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
