Lab Grown Diamonds

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Five-year research grant to encourage indigenous production of lab-grown diamonds (LGD) machinery, seeds and recipe given to IIT-Madras

Project appraisal Committee has recommended the proposal, which has been approved by the Shri Piyush Goyal, the Hon'ble Minister for Commerce & Industry, Textiles, Food & Public Distribution and Consumer Affairs. Budget Support will be provided during the course of next five years.

The aim of this project is to provide, in mission mode, technical assistance to the industries, and entrepreneurs in the country, in promote indigenous manufacturing of both Chemical Vapour Deposition (CVD) and High Pressure and High Temperature (HPHT) systems along with the recipes for expanding the Lab Grown Diamond (LGD) business at the upstream end. Research efforts would make the technology available for startups at affordable cost, increase employment opportunities, increase exports of LGD thus play a significant role in fuelling India’s economic growth.

The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 9% to India’s total merchandise export. Over the past decade, there has been several positive developments in the Gem & Jewellery sector globally. One of the major technological developments in this sector has been Laboratory-grown diamonds (LGD).

Besides the jewellery industry, lab-grown diamonds are used in computer chips, satellites, 5G networks as they can be used in extreme environments due to their potential to operate at higher speeds while using less power than silicon-based chips. LGD has vast application in field of defence, optics, jewellery, thermal & medical industry.

Globally, the market stood at $1 billion in 2020, the lab-grown diamond jewellery market is expected to rapidly rise to $ 5 billion by 2025 and exceed $ 15 billion by 2035.

Lab grown diamonds are produced through 2 technologies, namely High-Pressure High Temperature (HPHT) and Chemical Vapour Deposition. India is one of the leading producers of lab grown diamonds using CVD technology. As per industry estimates, India’s share in global trade in the financial year 2021-22 was 25.8. However, we have to depend on other countries for the supply of critical machinery components and ‘seeds’ — which are the raw material for producing synthetic diamonds.

It is, therefore, imperative that India develops its own, indigenous technology for producing the critical machinery components seeds to remove the import dependence that we have in the case of natural diamonds. Good quality lab-grown diamonds with qualified certification, produced from the developed equipment and process parameters will attract many foreign customers increasing the export volume of lab-grown diamonds and scalability of production. The documented process parameters and the developed recipe will encourage new entrepreneurs to enter the lab-grown diamond business making it easier and cost-effective to set up the facility, start the business and generate employment.

8-Feb-2023:  Union Budget puts special emphasis on Laboratory-Grown Diamonds (LGD)

The Ministry of Finance (MoF) in its 2023-24 Union Budget has put special emphasis on Laboratory-Grown Diamonds (LGD).

Government Initiatives to Promote Lab-Grown Diamond

  • The 2023 Union Budget promises to reduce the basic customs duty on seeds used in the manufacture of lab-grown diamonds, from 5% to nil.
  • A five-year research grant will be provided to one of the Indian Institute of Technologies (IITs) for research and development in the field of LGDs.
  • MoF has proposed the creation of new tariff lines to help in better identification of a number of products, including synthetic diamonds. The aim is to help facilitate trade as well as to have clarity on availing concessional import duty.

Laboratory-Grown Diamonds

Manufactured in laboratories

  • Laboratory-Grown Diamonds have same chemical composition and properties as natural diamonds.
  • Two manufacturing processes: High Pressure, High Temperature (HPHT) and Chemical Vapour Deposition (CVD).
  • HPHT method:
    • Seed and pure graphite carbon exposed to 1,500 degrees Celsius and high pressure.
  • CVD method:
    • Seed is heated to 800 degrees Celsius in carbon-rich gas.
    • Gas sticks to seed, gradually building the diamond.
  • Used for industrial purposes and as cutters.
  • Pure synthetic diamonds are used in electronics as a heat spreader for high-power laser diodes, laser arrays, and high-power transistors.
  • First LGD was created by General Electric scientists in 1954, in a research laboratory in New York.

Environmental Footprint of Lab-Grown Diamond

  • The environmental footprint of a diamond grown in a laboratory is much lesser than that of a naturally occurring diamond.
  • Open-pit mining, one of the most common methods of mining naturally occurring diamonds, involves moving tonnes of earth and rock to extract these precious stones.
  • Diamond Foundry report states that it takes ten times more energy to extract a natural diamond from the earth than it takes in creating one above the ground.

India's Diamond Industry

  • India is the world's largest cutting and polishing center for diamonds, accounting for over 90% of polished diamond manufacturing globally.
  • Surat in Gujarat is a global hub for diamond manufacturing.
  • US is the biggest market for cut and polished diamonds, with China a close second.
  • India contributes 19% of the total diamond exports in the world.
  • UAE is the largest export destination for Indian gold jewellery, accounting for over 75% of the South Asian country's jewellery exports.
  • India's overall exports of gems and jewellery in November 2022 were USD 2.43 billion, up 2.05% from the same year-ago period.
Pin It
Whatsapp

Five-year research grant to encourage indigenous production of lab-grown diamonds (LGD) machinery, seeds and recipe given to IIT-Madras

Project appraisal Committee has recommended the proposal, which has been approved by the Shri Piyush Goyal, the Hon'ble Minister for Commerce & Industry, Textiles, Food & Public Distribution and Consumer Affairs. Budget Support will be provided during the course of next five years.

The aim of this project is to provide, in mission mode, technical assistance to the industries, and entrepreneurs in the country, in promote indigenous manufacturing of both Chemical Vapour Deposition (CVD) and High Pressure and High Temperature (HPHT) systems along with the recipes for expanding the Lab Grown Diamond (LGD) business at the upstream end. Research efforts would make the technology available for startups at affordable cost, increase employment opportunities, increase exports of LGD thus play a significant role in fuelling India’s economic growth.

The Gems and Jewellery sector plays a significant role in the Indian economy, contributing around 9% to India’s total merchandise export. Over the past decade, there has been several positive developments in the Gem & Jewellery sector globally. One of the major technological developments in this sector has been Laboratory-grown diamonds (LGD).

Besides the jewellery industry, lab-grown diamonds are used in computer chips, satellites, 5G networks as they can be used in extreme environments due to their potential to operate at higher speeds while using less power than silicon-based chips. LGD has vast application in field of defence, optics, jewellery, thermal & medical industry.

Globally, the market stood at $1 billion in 2020, the lab-grown diamond jewellery market is expected to rapidly rise to $ 5 billion by 2025 and exceed $ 15 billion by 2035.

Lab grown diamonds are produced through 2 technologies, namely High-Pressure High Temperature (HPHT) and Chemical Vapour Deposition. India is one of the leading producers of lab grown diamonds using CVD technology. As per industry estimates, India’s share in global trade in the financial year 2021-22 was 25.8. However, we have to depend on other countries for the supply of critical machinery components and ‘seeds’ — which are the raw material for producing synthetic diamonds.

It is, therefore, imperative that India develops its own, indigenous technology for producing the critical machinery components seeds to remove the import dependence that we have in the case of natural diamonds. Good quality lab-grown diamonds with qualified certification, produced from the developed equipment and process parameters will attract many foreign customers increasing the export volume of lab-grown diamonds and scalability of production. The documented process parameters and the developed recipe will encourage new entrepreneurs to enter the lab-grown diamond business making it easier and cost-effective to set up the facility, start the business and generate employment.

8-Feb-2023:  Union Budget puts special emphasis on Laboratory-Grown Diamonds (LGD)

The Ministry of Finance (MoF) in its 2023-24 Union Budget has put special emphasis on Laboratory-Grown Diamonds (LGD).

Government Initiatives to Promote Lab-Grown Diamond

  • The 2023 Union Budget promises to reduce the basic customs duty on seeds used in the manufacture of lab-grown diamonds, from 5% to nil.
  • A five-year research grant will be provided to one of the Indian Institute of Technologies (IITs) for research and development in the field of LGDs.
  • MoF has proposed the creation of new tariff lines to help in better identification of a number of products, including synthetic diamonds. The aim is to help facilitate trade as well as to have clarity on availing concessional import duty.

Laboratory-Grown Diamonds

Manufactured in laboratories

  • Laboratory-Grown Diamonds have same chemical composition and properties as natural diamonds.
  • Two manufacturing processes: High Pressure, High Temperature (HPHT) and Chemical Vapour Deposition (CVD).
  • HPHT method:
    • Seed and pure graphite carbon exposed to 1,500 degrees Celsius and high pressure.
  • CVD method:
    • Seed is heated to 800 degrees Celsius in carbon-rich gas.
    • Gas sticks to seed, gradually building the diamond.
  • Used for industrial purposes and as cutters.
  • Pure synthetic diamonds are used in electronics as a heat spreader for high-power laser diodes, laser arrays, and high-power transistors.
  • First LGD was created by General Electric scientists in 1954, in a research laboratory in New York.

Environmental Footprint of Lab-Grown Diamond

  • The environmental footprint of a diamond grown in a laboratory is much lesser than that of a naturally occurring diamond.
  • Open-pit mining, one of the most common methods of mining naturally occurring diamonds, involves moving tonnes of earth and rock to extract these precious stones.
  • Diamond Foundry report states that it takes ten times more energy to extract a natural diamond from the earth than it takes in creating one above the ground.

India's Diamond Industry

  • India is the world's largest cutting and polishing center for diamonds, accounting for over 90% of polished diamond manufacturing globally.
  • Surat in Gujarat is a global hub for diamond manufacturing.
  • US is the biggest market for cut and polished diamonds, with China a close second.
  • India contributes 19% of the total diamond exports in the world.
  • UAE is the largest export destination for Indian gold jewellery, accounting for over 75% of the South Asian country's jewellery exports.
  • India's overall exports of gems and jewellery in November 2022 were USD 2.43 billion, up 2.05% from the same year-ago period.

2022

1-Nov-2022: Commerce Minister applauds the Gujarat Government for spearheading several wide-ranging initiatives to promote the Lab Grown Diamonds Sector

Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal appreciated the Gujarat Government for spearheading several wide-ranging initiatives to promote the Lab Grown Diamonds Sector, especially the initiative to reduce electricity tariff/duty for Lab Grown Diamonds (LGD) industry by offering a 100% exemption on electricity duty for 5 years under the provisions of the electricity act. He was chairing a meeting on LGD in New Delhi today.

Shri Goyal applauded the Gujarat Government for recognizing LGDs as a thrust sector under the Aatmanirbhar Gujarat Schemes for Assistance to Industries 2022. It may be noted that 'Industrial machinery and equipment' and 'electrical machinery and equipment' have also been considered by the Gujarat Government as thrust sectors, the benefits of which maybe availed by the LGD reactor manufacturers.

He lauded the Government of Gujarat for spearheading several wide-ranging initiatives to promote the Lab Grown Diamonds Sector. A basket of incentives has been offered, including concessions in power cost, interest cost and tax, R&D support to develop indigenous technologies for LGDs, skill development support to encourage skill upgradation for existing workforce etc.

In a bid to reduce electricity tariff, 35% of the charges paid to distribution licences for LT/HT service lines upto Rs. 5 Lakhs can also be availed by industrial units. Another incentive offered is the 100% reimbursement of employer contribution of EPF upto 12% of basic pay or upto Rs. 1800 per month, whichever is lesser, for a period of 10 years.

Interest subsidy and net SGST reimbursement upto a 100% is also being offered to MSMEs, large and mega players. Mega units can claim for reimbursement of 100% of capital input tax on capital goods over 20 years. Assistance is also being provided for technology acquisition to the tune of 65% of the cost, upto Rs. 50 lakhs, including patented technology acquired from foreign company. For market development, assistance to MSMEs to attend National and International Exhibitions is being provided. Rent assistance to the tune of 65% upto Rs. 1 Lakh per annum for 3 years is also being offered. The Government is also striving to support R&D for industrial associations as well as individual enterprises and skill development through financial assistance.

Members of the Gems and Jewellery Export Promotion Council (GJEPC) and officials from the Ministry of Commerce and Industry were present at the meeting.