Lab-Grown Diamonds (LGDs), an alternative to naturally occurring diamonds, are manufactured diamonds created in a controlled laboratory environment. Despite their non-natural origin, lab-grown diamonds possess identical chemical compounds and physical properties as their natural equivalents. Still, they carry none of the intensive geological process under extreme heat and pressure that occur over millions of years.
These artificial diamonds are produced primarily through two methods: High Pressure High Temperature (HPHT) and Chemical Vapour Deposition (CVD). Both begin with a seed, a diamond slice. In the HPHT method, this seed is mixed with pure graphite carbon and subjected to conditions similar to those deep beneath the Earth’s surface, around 1500 degrees Celsius and high pressure. Conversely, the CVD process heats the seed to roughly 800 degrees Celsius within a sealed chamber filled with a carbon-rich gas, which gradually adheres to the seed, building the diamond layer by layer.
Applications and Environmental Footprint of Lab-Grown Diamonds
Lab-grown diamonds have widespread use in various industries due to their hardness and strength, ranging from cutting tools to high-end electronics. Their thermal conductivity properties make them ideal for use in items like high-power transistors, laser arrays, and high-power laser diodes.
One significant advantage of lab-grown diamonds is their reduced environmental impact compared to mining naturally occurring diamonds. Diamond Foundry, an eco-conscious LGD manufacturer, states that it consumes ten times less energy to produce a synthetic diamond than to extract a natural one from Earth. Traditional diamond mining practices, such as open-pit mining, involve moving substantial amounts of earth and rock, carrying significant environmental costs.
The Indian Diamond Industry
India boasts the world’s largest diamond-cutting and polishing center, responsible for over 90% of global polished diamond production. Factors like the availability of skilled labor, advanced technology, and lower costs all contribute to this achievement. Surat, located in Gujarat, is a hub for diamond manufacturing.
Currently, the United States and China are the largest markets for cut and polished diamonds. India contributes 19% of worldwide diamond exports, while the UAE is the largest recipient of Indian gold jewellery, taking in over 75% of India’s overall exports.
Government Initiatives to Promote Lab-Grown Diamonds in India
The Ministry of Finance’s 2023 Union Budget has marked a significant policy shift by placing focus on lab-grown diamonds. There are plans to reduce the basic customs duty on seeds used in lab-grown diamond manufacturing, thereby encouraging local production. The duty on seeds will be reduced from 5% to zero, and a five-year research grant is being earmarked for one of India’s Indian Institute of Technologies (IITs). The aim is to foster research and development in the growing area of lab-grown diamonds.
In addition, the MoF proposes to create new tariff lines to better identify products including synthetic diamonds, supporting trade facilitation and providing clarity on concessional import duty. These measures align with the government’s vision to support the sustainable growth of India’s thriving gem and jewellery industry.