The Shift Towards Lab-Grown Diamonds in India
Surat (Gujarat) [India], June 27: The diamond industry in Surat, Gujarat, India, has long been renowned for its expertise in manufacturing and supplying natural diamonds globally. However, a soft promotion of lab-grown diamonds as a thoughtful gift from the Prime Minister of India led to a significant drop in the sales of mined diamonds.
In June 2023, on his first US State visit, Indian Prime Minister Narendra Modi gifted American President and First Lady Joe and Jill Biden – a customary tradition during official visits. He gifted a 7.5-carat diamond, not mined but grown in the diamond laboratories of Surat.
Following this unprecedented event, the lab-grown diamond jewellery sector in India experienced a sudden surge in popularity. This surge not only revolutionized the industry but also marked a significant shift from traditional to synthetic diamonds.
Furthermore, during the Union Budget 2023-24 in February, Minister of Finance Nirmala Sitharaman announced a five-year research grant for IIT-Madras to set up an India Centre for Lab-grown Diamond at an estimated cost of ₹242.96 crores. A reduction in customs duties for the ‘seeds’ used to make diamond crystals was also approved.
The outcome? A substantial boost to the lab-grown diamond industry’s manufacturing and sales unit. This led to a rise in the number of companies and lab-grown diamond manufacturers in India, including Stefee Jewels.
What are Lab-Grown Diamonds?
Lab-created diamonds, also known as synthetic or manufactured diamonds, are an ethical, sustainable, and cost-effective alternative to earth-grown diamonds. A natural diamond is often associated with unfair trade and unethical labour practices. Moreover, mining causes environmental damage. On the other hand, a lab diamond is free from conflict and blood trade. It is sustainable as it is produced in a lab under expert supervision.
High-Pressure High-Temperature (HPHT) and Chemical Vapor Deposition (CVD) are two advanced approaches for producing lab-grown diamonds in controlled lab settings. The HPHT method involves subjecting carbon to extreme pressure and temperature to replicate the natural diamond formation process.
In the CVD technique, carbon atoms are deposited onto a substrate surface in a controlled environment to grow diamond crystals layer by layer.
Future Projections for the Lab-Grown Diamond Market in India
India has risen as a prominent figure and a notable contributor to the global lab-grown diamond market. The surge in demand for lab-grown jewellery coupled with affordable lab-grown diamond prices has led to rapid industry expansion, fostering a conducive environment for sectoral development and growth in India.
The following are the projections and market analysis:
India holds 25% of the global market share in the production of lab-grown diamonds.
The lab-grown diamond exports are expected to rise by 7-9% in FY25.
The lab-grown diamond jewellery sales grew at 10.6% CAGR from 2018 to 2021. For the next 10 years (2023 to 2033), the demand for lab-grown diamond jewellery is expected to rise by 14.8% CAGR.
In 2022, the lab-grown diamond jewellery market was valued at $264.5 million. The total market size is projected to reach a valuation of $1,192.3 million by 2033.
➔ With the increasing demand, lab-grown diamond prices are also expected to increase over the years.
Factors Contributing to the Growth of Lab-Grown Diamond Market in India
Technological Advancements: Embracing the CVD production process and continuously adopting the latest innovations have enhanced the efficiency and scalability of lab-grown diamond production in India.
Sustainability: Consumers’ awareness of environmental concerns associated with traditional diamond mining has prompted them to opt for sustainable lab-grown diamonds, which have a reduced carbon footprint.
Shifting Consumer Preferences: There’s always a market demand if the consumer proposes a need. Today, there is a significant rise in lab-grown diamonds in India, which have become a popular choice amongst the younger generation who wish to indulge in luxury but in an eco-friendly manner.
Cost-Efficiency: Lab-grown diamond prices in India are 30-40% less than natural diamonds, making them an attractive and economical choice.
Government Support: The Indian government’s initiatives and policies to promote the growth of the lab-grown diamond industry, such as research grants and incentives for lab diamond manufacturers, have further facilitated the expansion of the market in India.
The Way Forward with Stefee Jewels
Founded by Mr Shantilal Thesia, Stefee Jewels is a leading CVD lab-grown diamond manufacturer in India. Our headquarters are in Surat, but we extend our exquisite services across India. Stefee Jewels is an IGI – Certified company.
Our team of professional designers and expert manufacturers is committed to producing and supplying sustainable, unique, and the best lab diamonds in India. Whether it is the cut, polish, shine, price or carat weight, you can rely on us to receive premium quality, real, lab-grown diamonds.
Be a part of the future by shopping with Stefee Jewels today!
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