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Surat’s lab-grown diamonds set to get more glitter

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“There are over 2,000 small and medium units in Surat manufacturing lab-grown diamonds. After unlock-1, the lab-grown diamond units are working at their full capacity due to increased demand. These diamonds are studded in gold and bling jewellery in the US,” added Shah.

SURAT: The domestic lab-grown diamond or synthetic diamond industry is set to get a major boost with the union finance minister Nirmala Sitharaman increasing the basic customs duty (BCD) on the import of cut and polished synthetic diamonds from 7.5% to 15%.

The lab-grown diamonds cut and polished in India are attracting buyers from new markets such as Germany, Italy and Australia with the economic uncertainty caused by the coronavirus pandemic making the natural diamonds unaffordable for most of the consumers in the global markets.

In recent times, the Indian consumers, too have turned to the lab-grown diamonds during the pandemic to flaunt their jewellery with the sparkling gems.

Industry sources said about 95% of the lab-grown diamonds manufactured in Surat are exported to the US sa they are 60% cheaper than the natural gems.

Many leading diamond jewellery brands in the US, including Signet Jewellers, the largest retailer of diamond jewellery, now sell lab-grown diamonds. Lab-grown Diamond and Jewellery Promotion Council (LGDJPC) chairman Shashikant Shah told TOI, “The increase in the customs duty on synthetic cut and polished diamonds is going to boost the domestic lab-grown diamond manufacturing. About Rs 500 crore worth of lab-grown polished diamonds are imported in the country per annum.”

Shah said the lab-grown diamond exports have achieved double-digit growth during the Covid-19 pandemic when the exports of natural diamonds dipped.

“There are over 2,000 small and medium units in Surat manufacturing lab-grown diamonds. After unlock-1, the lab-grown diamond units are working at their full capacity due to increased demand. These diamonds are studded in gold and bling jewellery in the US,” added Shah.

According to the figures of Gems and Jewellery Export Promotion Council (GJEPC), the export of lab-grown diamonds between April-December 2020 increased 64% to Rs 3,600 crore compared to Rs 2,200 crore during the same period in previous year.

 

Courtesy: The Economic Times

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