Finally their time to shine?

India is a frontrunner within the Chemical Vapor Deposition (CVD) technique of manufacturing lab-grown diamonds.

When Prime Minister Narendra Modi visited the US on Worldwide Yoga Day (June 21, 2023), he gifted Jill Biden a 7.5-carat lab-grown diamond made by Surat-based Inexperienced Lab Diamond. Whereas a diamond of this dimension prices about Rs 40.5 lakh, a lab-made model of the identical high quality and dimension prices round Rs 15 lakh. Additional, the manufacturing of this diamond led to 0.028 grams of carbon dioxide (CO2) being emitted per carat, 100,000 occasions lower than the manufacturing of the typical mined diamond.

Lab-grown diamonds (LGDs), also called lab-created or artificial diamonds, are diamonds which are grown in a laboratory utilizing technological processes. The method of rising diamonds in a lab begins with a small diamond seed, which is positioned in a chamber the place situations replicate the pure atmosphere during which diamonds are shaped deep inside the Earth’s crust. By way of both the Excessive Stress-Excessive Temperature (HPHT) technique or the Chemical Vapor Deposition (CVD) technique, carbon atoms are progressively added to the seed, layer by layer, over a interval of a number of weeks or months. This leads to the expansion of a diamond crystal that’s visually and chemically an identical to a naturally occurring diamond.

Jewelry made with lab-grown or artificial diamonds

For jewellery-makers, utilizing LGDs is mostly like working with pure diamonds. “The stones might be lower, polished, and set in varied steel settings similar to pure diamonds. The principle distinction lies within the sourcing, availability, pricing, and probably the market notion of LGDs in comparison with their pure counterparts. LGDs provide a extra constant and dependable provide in comparison with pure diamonds, that are topic to the restrictions of mining operations. Which means that jewellers have simpler entry to diamonds of particular sizes, shapes, and qualities when utilizing LGDs. Each LGDs and pure diamonds endure grading primarily based on the 4Cs (carat weight, color, readability, and lower). Nevertheless, some grading establishments might use particular terminology or certificates to distinguish between the 2 sorts of diamonds,” says Dipu Mehta, managing director, ORRA Effective Jewelry.

Market musings

India has made important strides within the lab-grown diamond sector. With developments in expertise, authorities help, and a rising emphasis on sustainability, India is rising as a key participant on this area.

Lisa Mukedkar, founder & CEO, Aukera, says, “India’s well-established diamond trade, coupled with its experience in diamond slicing and sharpening, offers it a aggressive benefit within the lab-grown diamond market. The nation’s sturdy manufacturing infrastructure and expert workforce contribute to its potential to provide high-quality lab-grown diamonds.

The decreased environmental impression and moral sourcing related to lab-grown diamonds additional add to their enchantment. Whereas the patron marketplace for lab-grown diamonds in India remains to be in its early phases, there may be immense potential for development. As shoppers, together with these with a progressive mindset, more and more prioritize sustainability and moral decisions, the demand for lab-grown diamonds is predicted to rise.”

Authorities push

Finance Minister Nirmala Sitharaman introduced in her Funds 2023 speech that the federal government would subsidize analysis and improvement within the LGD trade by offering a grant to one of many Indian Institutes of Know-how for 5 years. “Lab-grown diamonds is a expertise and innovation sector with high-employment potential. Customs responsibility on the seeds utilized in lab-grown diamond manufacturing can be decreased. These are environmentally pleasant diamonds which have optically and chemically the identical properties as pure diamonds,” she mentioned.

Additionally learn: India’s bet on lab-grown diamonds: What will it take to lead the world?

Demand drivers

High quality-conscious Indian shoppers searching for the most effective worth proposition are starting to be concerned about what lab-grown diamonds can ship on each fronts.

“Lab-grown diamonds sometimes price round 50 p.c lower than their pure counterparts, relying on the scale and high quality of the stone. This worth distinction permits shoppers to entry bigger and higher-quality diamonds inside their funds. Moreover, when lab-grown diamonds and mined diamonds are each set in 18K gold, the price of lab-grown diamonds is roughly 60 p.c lower than that of mined diamonds. This worth benefit opens alternatives for people to decide on bigger or extra intricate designs with out compromising on high quality or breaking the financial institution,” says Mukedkar.

The final 12 months have seen development in lab-grown diamond manufacturing in India – the nation produces 15 p.c of all LGDs on the planet, in keeping with India’s Ministry of Commerce and Business. The identical report additionally states that “India’s exports of polished lab-grown diamonds had been USD 274 million, USD 473 million, USD 637 million and USD 1293 million throughout 2018-19, 2019-20, 2020-21 and 2020-21, respectively. Annual development throughout the identical intervals had been 72 p.c, 35 p.c and 103 p.c.

Additionally learn: Indian lab-grown diamonds set for a bigger sparkle after import duty removal, govt push

Tech speak

Pushed by expertise, lab-grown diamonds don’t incur the environmental and social injury that’s often related to mining diamonds. The CVD expertise gives shoppers the purest sort of diamond licensed as Sort IIA by diamond certifying our bodies. Discovering Sort IIA high quality diamonds amongst mined diamonds is uncommon, with solely 2 p.c of diamonds mined ever being this purest sort of diamonds. India notably specializes and leads within the CVD expertise that’s licensed as Sort IIA. HPHT diamonds, alternatively, are developed in China and comprise steel impurities.

Challenges

Shopper mindset round LGDs being pretend / synthetic wants to vary. Furthermore, client additionally have considerations when it comes to the resale alternatives for artificial diamonds. Producers and types try to handle this by “providing buyback and trade alternatives” says Karamjyot Chawla, co-founder of Home Of KaSa. Moreover, certification by impartial third-party diamond grading establishments like IGI & SGL is sought to provide patrons some assurance. These establishments are recognized for grading mined diamonds, and clearly mark lab-grown diamonds disclosures, provides Chawla.

LGDs are having their second now, time will inform how they maintain and develop to make the jewelry house ‘rock on’.