Commencing with a significant development in the Indian diamond and jewelry industry, the Prime Minister of India recently inaugurated the Surat Diamond Bourse (SDB) in Gujarat, marking it as the world’s largest office complex. Aiming to shift the diamond trading hub from Mumbai to Surat, this move emphasizes Surat’s expertise in diamond cutting and polishing.
Understanding Diamonds and Their Significance
Diamonds are rare, naturally occurring minerals that are pure carbon. The name ‘diamond’ is derived from the Greek word ‘Adamas’, implying indestructibility. These precious stones primarily occur in two types of deposits – igneous rocks of basic or ultrabasic composition and alluvial deposits sourced from primary sources.
Major Diamond Producing Countries
The leading diamond-producing nations include Russia, Botswana, Canada, South Africa, and the Democratic Republic of the Congo. As of 2022, Russia has claimed the position of the world’s largest rough diamonds producer, procuring nearly 42 million carats. However, recent restrictions imposed by the G7 group on direct imports of Russian-origin diamonds from January 2024, and diamonds processed by third countries like India from March 2024, have instigated concerns for the Indian gems, jewelry trade, and the diamond processing industry. Consequently, lab-grown diamonds have started gaining preference due to their eco-friendliness.
Diamond Industry in India
India, contributing to over 90% of the global polished diamond manufacturing, stands as the world’s largest cutting and polishing center for diamonds. The Indian Minerals Yearbook 2019 classifies the diamond fields of India into four region groups, including the Central Indian tract, South Indian tract, Behradin-Kodavali area, and the Eastern Indian tract. As per 2022 data, India tops the list of exporters in cut & polished diamonds.
Introduction to Lab-Grown Diamonds
Lab-grown diamonds, also known as cultured, synthetic, man-made, or artisan-created diamonds, are formed in laboratories using state-of-the-art technology. These diamonds share identical chemical, optical and physical properties, and crystal structure with natural diamonds. However, unlike mined diamonds, LGDs bypass the social and environmental effects associated with mining activities, making them eco-friendly and contributing positively towards environmental preservation.
Production Methods of Lab-Grown Diamonds
Primarily, there are two methods to produce lab-grown diamonds – chemical vapor deposition (CVD) and high pressure, high temperature (HPHT). Both these methods require a seed, which is a slice of another diamond, to commence the production of artificial diamonds.
Market Share of Lab-Grown Diamonds in India
With its prominence in diamond cutting and polishing, India has observed a significant rise in export earnings due to the escalating global demand for LGDs. Currently, LGDs hold a 2-3% share in India’s overall diamond industry. To enhance this share, the Union Finance Minister announced the removal of customs duty on imported seeds used in the manufacturing process of rough LGDs in the 2023-24 Budget.