At a time when diamond industry is going through a glut, Lab Grown Diamonds have come to the rescue of the world’s largest diamond processing center – India’s diamond value chain. More than 150 units in India’s diamond capital – Surat, where according to an estimate around INR 30,000 crores ($ 4+ Bn) worth of diamonds have been produced in the last 3 years, have started to grow Lab-grown diamonds. Due to recession like scenario in mined diamond sector, number of Lab-grown diamond growers have increased significantly in the past 2 years. According to another estimate, around 10 percent of SME diamond units or over 600 units in Surat have shifted to manufacturing Lab-grown diamonds
Gaurav Patel – owner of Krystal Diamonds, a Lab Grown Diamond manufacturer says “We have been producing about 2,000 carats of lab-grown diamonds per annum. Majority of our diamonds are exported to the US, while a small portion is sold to the buyers in Delhi, Mumbai and Bengaluru… One can get enough return on the lab-grown diamonds. For example, you bought lab-grown diamonds at $1,000 today, you can roughly get $500 after two years”
Rajesh Bhadiadara, a lab-grown diamond manufacturer said, “We have been supplying lab-grown diamonds to more than a dozen parties in Israel, who were earlier being served by China. But as the quality was not good, they chose us and we have clients in domestic market as well.”
Apart from Lab-grown diamond manufacturing, diamond processing (cutting and polishing) units in India have benefited from Lab Grown Diamonds. This is corroborated by the fact that between April and July 2019, exports of Lab-grown diamonds from India increased by a whooping 94 percent. Data published by GJEPC (Gems and Jewellery Export Promotion Council) show that Lab Grown Diamond exports in the said period was worth INR 850 Crores ($ 116+ Mn) compared to only INR 450 crores in the same period last year.
Exported to US, Dubai, Hong Kong and other major global diamond centers, 95 percent of these Lab-grown diamonds are manufactured in units located in Surat’s Varachha and Katargam areas. Along with China, Singapore and US where Lab-grown diamonds are manufactured in large quantities, Surat is also rapidly becoming a major center for growing Lab Grown Diamonds.