Why lab-grown diamonds are key to unlocking the future of India’s jewelry industry

Global production of lab-grown diamonds is 6-7 million carats, of which India produces 1.5 million carats

A supervisor inspects diamonds at a cutting and polishing workshop in Ahmedabad. AFP

India’s gemstone and jewelry industry is one of the largest industries in the world and contributes over 29% of global jewelry consumption. Isn’t that fascinating? Additionally, it provides job opportunities to more than 4.64 million employees and has more than 3,00,000 jewelry and jewelry players.

India is now also an emerging source of lab-grown diamond jewelry and CVD diamond players and manufacturers are sure to help India unlock the competitive edge of the new era diamond. The good news is that the demand for lab-grown diamonds is steadily increasing among Millennials and Gen Z. The Gem and Jewelery Export Promotion Council recorded lab-grown diamond exports at $1.05 billion as of April 2021 to January 2022, i.e. a growth of 113%.

India is a major player in lab-grown diamond exports to the United States, Hong Kong, Israel and Belgium. The city of Surat in India is the world leader in diamond polishing and cutting and has seen a steady increase in the number of lab-grown diamond makers in recent years. Lab-grown diamonds are produced in reactors, and more reactors mean faster diamond production.

India currently has over 2,000 diamond reactors, mostly in Surat, followed by Jaipur and Mumbai. Demand is intensifying locally and globally, which has led lab manufacturers players to make efforts to dramatically increase production. Technological breakthroughs, cost effectiveness and excellent yield of lab polished colored diamonds are all poised to make India a major hub for the production and processing of these diamonds.

India’s lab-cut diamond market is growing at around 55% per year. The laboratory-grown segment in India has a bright future and has great potential for job creation and actively contributes to the export basket of the country. The demand for lab-grown diamonds has further increased after the second wave of COVID-19 rocked the country. Experts believe that post-covid “revenge shopping” has been a major contributor to the increase in demand for lab-grown diamond jewelry. According to major retailers and producers, demand for synthetic diamonds is up 50-60% over last year’s sales, and the trend is continuing.

Lab-grown diamonds are durable, eco-friendly and extremely affordable compared to mined diamonds and are a hit with millennial consumers. There is a steady demand for these diamonds among millennial brides and celebrities. first class. Retailers also saw a surge in demand after Covid. People had been facing the lull of a lockdown for some time once restrictions eased. Generation Y wanted to treat themselves to luxury jewelry that was both breathtaking and economical. Lab-grown diamonds seemed like the perfect choice of stones to treat yourself to and also own some great looking diamonds at 1/4 the price of conventional diamond jewelry.

World production of lab-grown diamonds is 6-7 million carats, of which India produces 1.5 million carats. This demonstrates the rapid success and demand for the synthetic diamond segment, as well as the future potential of synthetic diamonds for the Indian jewelery industry. Young diamond consumers are falling in love with lab-grown diamond jewelry because it is environmentally friendly and can be purchased at a much lower price than conventional diamonds. Generation Z and Millennials make up approximately 70% of lab-grown diamond consumers.

Technology and innovation in the creation of lab-grown diamonds has made crucial advances, which has made it possible to cultivate higher quality diamonds at a cheaper rate. The current growth phase of lab-grown diamonds will lead to industry consolidations, mergers and acquisitions in the Indian market. Lab-grown diamond cultivation is a high-tech and demanding activity that requires skill, patience and commitment.

At first, increasing the desired carat and color was a challenge, but through sustained effort, experimentation and constant innovation, Indian manufacturers are now very proficient in producing high quality polished diamonds. The growing demand for lab-grown diamonds has led the Indian government to launch efforts to regularize the trade in lab-grown diamonds to motivate industry customers to venture into this new industry which is expected to reach Rs 3,60,000 crore d here the end. of 2035. The Indian government is also planning special incentives to boost the production of lab-grown diamonds and create production-linked incentive schemes.

The author is CEO and co-founder of Aupulent, a leading lab-grown diamond jewelry brand. Views are personal.

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Sarah C. Figueiredo