The Gem & Jewellery Export Promotion Council (GJEPC) has announced new guidelines aimed at preventing the confusion between lab-grown diamonds (LGDs) and natural diamonds. This move aligns with the U.S. Federal Trade Commission (FTC) regulations, ensuring transparency and clarity within the diamond market. The GJEPC is also advocating for updates to the Consumer Protection Act to incorporate these definitions.
GJEPC Chairman Vipul Shah emphasized that the council will educate Indian traders to ensure compliance with these standards. “This will help stakeholders across the value chain guide and advise consumers, boosting consumer confidence,” Shah said.
Distinguishing Between Diamond Types
Under the new standards, terms like “real,” “genuine,” and “natural” can no longer describe lab-grown diamonds. Instead, terms such as “cultured,” followed by “laboratory-created” or “laboratory-grown,” must be used. While the FTC permits the use of “cultured” for LGDs, it advises against using the term “synthetic,” though it is not prohibited.
This distinction is especially important as the demand for LGDs continues to rise due to their ethical sourcing and affordability. However, many still consider natural diamonds unique for their rarity and timeless appeal.
Industry Reactions: A Step Toward Clarity
The decision has been widely supported by industry experts. Nirav Taswala, partner at Peacemoon Traders in Mumbai, praised the move. “This will help clarify the difference between natural and lab-grown diamonds, increasing consumer trust and expanding our market,” Taswala said. He added that diamonds should be categorized as either natural or synthetic, avoiding any mix-up between the two.
Anil Patel, founder of Enshine in Surat, also welcomed the guidelines. “This will allow both natural diamonds and LGDs to thrive independently, catering to different consumer preferences,” Patel explained. He noted that natural diamonds appeal to those valuing rarity, while LGDs attract those who prioritize ethical sourcing and environmental benefits.
Global Impact and Future Outlook
The GJEPC’s initiative is set to create a more transparent global diamond market. By defining the difference between natural and lab-grown diamonds, the standards aim to protect consumers and strengthen the industry. India’s leadership in the global diamond trade makes these new guidelines a significant step in maintaining integrity and consumer trust.
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