LAB-GROWN DIAMONDS

News from INDIA by Anand

WHAT IS A LAB-GROWN DIAMOND?

Simply put, a lab grown diamond is developed in lab under a machine, while a natural diamond is dug out from inside the earth.

Lab-made diamonds are developed from a carbon seed placed in a microwave chamber and superheated into a glowing plasma ball. The process creates particles that crystallize into diamonds in weeks.

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WHAT IS A LAB-GROWN DIAMOND?

This tech-based manufacturing directly cuts down the capital and labour-intensive factors of the mined diamond chain and so lab-grown diamonds cost 30-40 per cent cheaper than mined despite being 100 per cent diamond

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WHAT IS A LAB-GROWN DIAMOND?

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There are two types of lab-grown diamonds — CVD and HPHT.  India particularly specialises and leads in the chemical vapour decomposition (CVD) technology that is certified as the purest type of diamonds.

TYPE OF Lab Grown Diamonds

The report also mentions how lab-grown diamonds seem to have emerged from the shadows of natural diamonds and established itself a growing footprint in the gems and jewellery industry even as the global diamond industry has been facing headwinds lately

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According to the report, the Gemological Institute of America predicted the total annual sales of laboratory diamonds will be well over $100 billion in the not-too-distant future, from about $20 billion today.

$100 Billion Estimation

Nine out of 10 diamonds in the world are estimated to be polished in Surat. Although the world is still waking up to lab-grown diamonds, in terms of polishing, Surat has taken rapid strides in the last 2-3 years.

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sURAT THE DIAMOND CAPITAL

INDIA AND LAB-GROWN DIAMONDS

– The government of India has permitted 100 per cent foreign direct investment (FDI) in the sector under the automatic route.

– In Budget 2019-20, the GST rate has been reduced from 18 per cent to 5 per cent.

INDIA AND LAB-GROWN DIAMONDS

– The year 2019, particularly, was the year for lab-grown diamonds. India alone witnessed a sharp rise in lab-grown diamond exports worth $443 million which rose 102 per cent year-on-year. The report by Prabhudas Lilladher said even at the start of 2020, lab-grown diamond exports in India were up 60 per cent y-o-y, while natural diamond exports were down by 41 per cent y-o-y.

INDIA AND LAB-GROWN DIAMONDS

– Industry experts said around five years ago, there were a handful of lab diamond growers but now, as per the report, their numbers have gone up tremendously in the last 2-3 years due to a recession in the natural diamond industry. This has meant a growing competition between lab diamond and mined diamond companies.