India in Push to Capture Lab-Grown Market

RAPAPORT... The Gem and Jewellery Export Promotion Council (GJEPC) has proposed the opening of a lab-grown diamond park that will help grow the sector and process an extra 150 million carats a year."Lab-grown diamonds have the potential to build and sustain a stronger and more self-reliant domestic cutting and polishing industry," GJEPC chairman Colin Shah said in meeting with Commerce Minister Piyush Goyal Tuesday. The new center would fall under India's production-linked incentives (PLI) plan, which offers lower import duties and other benefits to foreign businesses to entice them to set up shop in the country. It would employ approximately one million workers and is expected to achieve annual revenue of INR 400 billion ($5.1 billion). To maintain a distinction between cut-and-polished lab-grown and natural diamonds, the GJEPC would employ a tracking system for the synthetic stones to allow it to monitor the supply chain, it noted.The GJEPC also asked the government to consider permitting the industry to import lab-grown diamond machinery at a lower, concessional rate for a one-year period. The long-term goal is for the Indian sector to manufacture the machines, the GJEPC explained. Additionally, the organization discussed creating an institute for research and development of lab-grown diamonds, a "Mega Common Facility Centre" in Gujarat, and introducing a skill development plan through on-the-job training."Currently, India contributes around 15% in global production of lab-grown diamonds for which it is presently self-sufficient," the GJEPC said. "However, keeping in mind the future potential, there is a need to maintain technological self-reliance in the production of machinery and a leadership position in the production of lab-grown diamonds. Given India's expertise in diamond polishing, it is imperative that India positions itself firmly in the lab-grown diamond sector, too, since the process of polishing [is] similar."Image: Lab-grown diamonds. (Keystar Gems)