Why lab-grown diamonds are key to unlocking future for Indian jewellery industry

The Indian Gems and Jewellery industry is one of the largest industries in the world and contributes more than 29 per cent to the global consumption of jewellery. Isn’t that fascinating? Moreover, it provides employment opportunities to over 4. 64 million employees and includes more than 3,00,000 gems and jewellery players.

India is now also an emerging source for lab-grown diamond jewellery and the CVD diamond players and manufacturers are certainly going to help India unlock the new–age diamond’s competitive advantage. The good news is the demand for lab-grown diamonds is on a steady rise among the millennials and Gen-Z. The Gem and Jewellery Export Promotion Council recorded the exports of lab-grown diamonds at $1.

05 billion from April 2021 to January 2022, which register a growth of 113 per cent. India is a major player in exports of lab-grown diamonds to the USA, Hong Kong, Israel, and Belgium. The city of Surat in India, is the world leader in diamond polishing and cutting, and is witnessing a steady rise in the number of lab-grown diamond manufacturers in recent years.

Lab-grown diamonds are produced in reactors, and an increased number of reactors means faster diamond production. India currently has more than 2,000 diamond reactors, predominantly in Surat, followed by Jaipur and Mumbai. The demand is ramping up locally as well as globally, which has led the players of lab-grown manufacturers to make efforts to increase production drastically.

The technological breakthroughs, cost-efficiency, and excellent output of coloured polished lab-grown diamonds are all set to make India a major hub for the production and processing of these diamonds. India’s polished lab-grown diamonds market is growing at around 55 per cent per year. The lab-grown segment in India has a bright future and has a great potential for employment generation and is actively contributing to the country’s export basket.

The demand for lab-grown diamonds has picked up moreover after the second wave of COVID-19 waved the country. Experts believe that ‘revenge shopping’ post-covid has largely contributed to the surge in demand for lab-grown diamond jewelry. According to leading retailers and producers, the demand for lab-grown diamonds increased by 50-60 per cent from last year’s sales, and the trend is continuing.

Lab-grown diamonds are sustainable, eco-friendly and extremely affordable compared to mined diamonds and are a hit among millennial consumers. There is a steady demand for these diamonds among millennial brides and top-notch celebrities. Retailers also experienced a surge in demand post-Covid.

People had been facing the lull of a lockdown for quite some time, once the restrictions were eased. Millennials wanted to indulge in luxury jewellery that was stunning as well as cost-friendly. Lab-grown diamonds seemed the perfect choice of stones to indulge and also own great-looking diamonds at 1/4th of the price of conventional diamond jewellery.

The global lab-grown production of diamonds is 6-7 million carats, out of which India is producing 1. 5 million carats. This demonstrates the rapid success and demand for the lab-grown segment, and the future potential of the lab-grown diamonds for the Indian jewellery industry.

Young diamond consumers are falling in love with lab-grown diamond jewellery because they are environmentally compatible and can be owned at a much lower price compared to conventional diamonds. Gen- Z and millennials form about 70 per cent of consumers for lab-grown diamonds. The technology and innovation in creating lab-grown diamonds have made crucial advancements, which is made it possible to grow superior quality diamonds at a cheaper rate.

The current growth phase of lab-grown diamonds is going to lead to industry consolidations, mergers, and acquisitions in the Indian market. Growing lab-grown diamonds is a high-tech and challenging business and requires the right talent, patience and commitment. In the beginning, growing the desired carat and colour was a challenge, but with sustained efforts, experimentation, and constant innovation, manufacturers in India are now highly competent to produce high-quality polished diamonds.

The increasing demand for lab-grown diamonds has led the Indian government to initiate efforts to regularize the trade of lab-grown diamonds to motivate industry patrons to venture into this new-age industry that is estimated to grow to Rs 3,60,000 crore by end of 2035. The Indian government is also in the process of planning special perks 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 jewellery brand.

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