India’s lab-grown diamond industry is evolving rapidly, expanding beyond jewelry into new and innovative applications.
Growth and Expansion
Initially, discussions about the industry focused on the rapid expansion of production in Surat and the impressive scale achieved within a short period. Now, the scope has widened to include industry terminology, regulations, and the diverse potential uses of lab-grown diamonds.
The rise of lab-grown diamond brands in the retail market has created new growth avenues, with many young startups challenging the traditional jewelry industry.
Entering the Mainstream
These developments have moved lab-grown diamonds from the industry’s margins to a more prominent position. Several measures are being implemented to support sustainable growth.
Jewelry remains the primary focus, with approximately 8,000 to 10,000 reactors producing diamonds using the Chemical Vapor Deposition (CVD) process in Surat and other locations. However, experts believe that jewelry represents only a fraction of the potential market for lab-grown diamonds.
Government Support and Research Initiatives
In 2023, the Indian government approved a research grant of Rs 2.43 billion (about $28 million) to the Indian Institute of Technology Madras (IIT-M) to support research in this field. IIT-M established the India Centre for Lab-Grown Diamond (InCent-LGD) as a dedicated research and development hub.
At a recent InCent-LGD seminar, industry and academic leaders explored various non-jewelry applications for lab-grown diamonds, including electronics, aerospace, defense, water treatment, and advanced manufacturing. Their exceptional hardness, thermal conductivity, and chemical stability also make them suitable for quantum computing and precision sensors.
Professor M.S. Ramachandra Rao, head of InCent-LGD, stated that the project aims to “revolutionize the lab-grown diamond industry with the development of indigenous microwave plasma (MP) CVD and high-pressure high-temperature (HPHT) machines within the next two years.”
Sabyasachi Ray, executive director of the Gem & Jewellery Export Promotion Council (GJEPC), emphasized India’s potential to become the world’s largest producer of rough lab-grown diamonds and a global hub for cutting, polishing, and trade.
Ensuring Transparency and Consumer Confidence
Despite the diversification, jewelry remains the primary market for lab-grown diamonds. The industry is working to establish clear distinctions between natural and lab-grown diamonds, ensuring both can grow independently.
To maintain transparency, the Indian government introduced distinct Harmonized System (HS) codes for exports. The availability of affordable detection devices has also reduced concerns about unintentional mixing of natural and lab-grown diamonds.
GJEPC recently urged its members to follow the U.S. Federal Trade Commission (FTC) guidelines on diamond nomenclature and marketing. It stated that adopting these standards would enhance clarity and transparency for industry stakeholders and consumers. The council also emphasized that globally, lab-grown diamonds are recognized as “laboratory-created” or “laboratory-grown,” rather than “synthetic diamonds.”
To further streamline terminology, India’s Central Consumer Protection Authority, in consultation with GJEPC, is working on a standardized framework. The Bureau of Indian Standards is expected to finalize lab-grown diamond guidelines soon.
Self-Regulation in the Industry
India’s jewelry industry operates under a self-regulatory model. Recently, Minister of Industry and Supply Piyush Goyal confirmed there are no plans to introduce new regulations.
Mehul Shah, Vice Chairman of the Bharat Diamond Bourse (BDB), recalled that BDB initially banned the trade of lab-grown diamonds to prevent fraudulent mixing. However, as detection technology improved, both natural and lab-grown diamonds were allowed within BDB’s premises. The exchange now advises members to maintain separate workspaces to prevent accidental mixing.
Shah, who also heads the Gemmological Institute of India (GII), highlighted that the institute has developed advanced, affordable detection machines to distinguish between lab-grown and natural diamonds. These machines are being distributed across India to improve transparency, particularly in smaller markets where awareness is lower.
Retail Growth and Market Expansion
Several startups, including Limelight Lab Grown Diamonds, Giva Jewellery, Fiona Diamonds, True Diamond, Solitario, and Aukera Jewellery, are establishing themselves as key players in the lab-grown diamond market.
Founded in 2019, Limelight Lab Grown Diamonds has partnered with Bhatwari Diamonds, a major CVD manufacturer, and Emerald Group, a jewelry manufacturer with an equity stake in the brand. Limelight operates over 30 exclusive retail outlets and 30 shop-in-shops across 35 cities.
Pooja Madhavan, the founder of Limelight, described the brand as a premium sustainable fine jewelry company specializing in solitaire jewelry. Engagement rings, once a niche category in India, have become one of its best-selling products. Limelight recently secured $11 million in funding to expand its retail presence and enhance its design offerings. The company aims to open more than 100 outlets by 2026 and potentially enter international markets by 2027.
Established retail chains are also entering the lab-grown diamond market. Trent Retail, part of the Tata Group, has launched a subsidiary called Pome to sell lab-grown diamonds through its department stores. Meanwhile, Senco Gold & Diamonds has established Sennes Fashion Ltd. as a dedicated subsidiary for lab-grown diamond jewelry.
The Future of Lab-Grown Diamonds in India
The lab-grown diamond industry is undergoing a transformation, with new players, increasing research, and expanded applications beyond jewelry. As GJEPC’s Ray noted at the InCent-LGD seminar, “India will be the future epicenter of lab-grown diamond technology and innovation.”
With continued government support, self-regulation, and technological advancements, India is well-positioned to lead the global market in lab-grown diamonds across multiple industries.
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