How India is promoting lab grown diamond manufacturing
Lab grown diamonds in India are not just another trend. They represent a significant shift in how we think about luxury, sustainability and the future of the industry. India, a country that has long dominated the global cutting and polishing market, is now stepping into the spotlight as a leader in lab grown diamond manufacturing.
With its rich history in craftsmanship and a strong industrial base, India is well placed to meet the growing demand for stones that are both beautiful and responsibly made.
As buyers become more conscious about the origins of their purchases, lab grown diamonds offer an attractive option alongside mined stones. This is not only about meeting demand. India's government is actively supporting the industry with strategic policies, investment in research and development, and incentives that are driving growth.
From the busy hub of Surat to cutting-edge research at top institutions, India is shaping the future of this market.
India's role in the global market
India has always been a diamond hub, with Surat processing around 90% of the world's mined stones. As demand for ethically produced and sustainable options grows, India is shifting focus to lab grown diamonds.
- Annual growth. India's lab grown diamond industry was growing at over 15% annually as of 2023.
- Key markets. Major exports go to the United States and Europe.
Why lab grown diamonds are gaining ground globally
- Ethical sourcing. Responsibly produced stones with a clear origin.
- Sustainability. Less water and energy than traditional mining.
- Affordability. Generally 60 to 85% cheaper than mined stones.
Government initiatives
The Indian government recognises the potential of this sector and has taken several steps to support it.
Budget 2023
| Government initiative | Details |
|---|---|
| R&D fund allocation | 242 crore rupees for research into HPHT and CVD technologies |
| Customs duty reduction | Lower duties on raw materials for lab grown diamond production |
| Budget focus | Improving production quality |
Surat: the global hub
Surat has long been associated with diamond processing, and it is now emerging as a global hub for lab grown diamonds too.
Infrastructure and technology investment
Surat's existing infrastructure, skilled workforce and access to raw materials make it an ideal location.
- Technological advances. Investment in HPHT and CVD technologies is lifting both production and quality.
- Job creation. The sector is expected to create 1.15 million new jobs worldwide by 2050.
As Vallabhbhai Patel, Kiran Group promoter and KIRA's founder, has put it, a workforce of 25 lakh worldwide will steadily grow to a crore on the basis of lab grown diamonds alone.
Collaboration between industry and academia
One of the critical drivers of India's success is the collaboration between the industry and academic institutions.
- Skilled workforce development. IITs and other institutions offer specialised courses to build a steady pipeline of skilled professionals.
- Ongoing research. Academic research focuses on improving production efficiency and product quality.
Global demand and export potential
India's lab grown diamond exports reached $1.3 billion in 2022, and demand keeps rising.
Key export markets
- United States. The largest consumer, accounting for nearly 40% of India's lab grown diamond exports.
- Europe. Growing demand in the UK and France, driven by ethical and environmental concerns.
With continued government support, better infrastructure and technological advances, India is on track to remain a global leader.
Conclusion
India is making significant strides in this sector, positioning itself as a global leader in a sustainable and ethical industry. Government initiatives, technological advances and collaboration with academia are all contributing. Cities like Surat, with their existing infrastructure and skilled workforce, are leading the transformation.
As the world's largest grower of CVD lab grown diamonds, KIRA represents the future of sustainable luxury. Our commitment to quality, eco-friendliness and innovation has made us a global leader. With a team carrying over 30 years of industry experience, we continue to reshape the future of certified lab grown diamonds.