Editor’s Note
As India cements its status as a global diamond hub, a new, fast-growing segment is emerging. This article examines the rise of the lab-grown diamond industry and its role in the country’s economic ambitions.
While it trails the glitter of the natural diamond trade, the industry is expanding fast – growing at nearly 15 per cent per year, according to analysts.
This comes as India seeks to boost its position as the world’s leading integrated diamond hub.
For jeweller Shaurya Taneja, the future is already on display in his showroom. Nearly half of the pieces he sells are made not from mined stones, but from diamonds grown in laboratories that sparkle just as brightly but are far more affordable.
Synthetic diamonds can sell for 50 to 90 per cent less than their natural counterparts. A one-carat mined diamond that costs about US$1,000 could have a lab-grown equivalent priced at just a few hundred dollars.
That price difference is resonating with younger, more cost-conscious buyers.
Beyond affordability, lab-grown diamonds also do not carry the ethical baggage long associated with the mining industry, such as human rights abuses and environmental damage.
Industry data suggests India’s lab-grown diamond market, currently worth about US$400 million, could more than triple to over US$1.5 billion within the next decade.
While India is unlikely to rival China – which still dominates global synthetic diamond production – analysts believe the South Asian country has a different advantage.
India already cuts and polishes 90 per cent of the world’s diamonds, both natural and synthetic.
India already cuts and polishes 90 per cent of the world’s diamonds, both natural and synthetic.
Much of that work happens in Surat in the western state of Gujarat – the country’s diamond capital – where lab-grown stones are now cut and polished alongside their mined cousins.
To move up the value chain, India is betting big on Chemical Vapour Deposition (CVD) technology, which is a cleaner, high-tech process used to grow diamonds layer by layer in controlled laboratory conditions.
With government backing, increased research and development, and lower import duties on diamonds, India hopes to become a one-stop shop for lab-grown gems.
India’s strength lies in integration, said Olya Linde, a partner at global management consulting firm Bain & Company.
Yet at home, technology still collides with tradition, said observers. For weddings and heirlooms, many Indians continue to see natural diamonds as the only true store of value, they added.
