FM’s Support For Lab Grown Diamonds Makes The Industry ‘Shine’
On Wednesday, as the Union Finance Minister Nirmala Sitharaman tabled the Union Budget 2023-24, she proposed the Centre’s support to the Lab Grown diamond (LBD) industry, putting this industry in the spotlight.
The budget announced a five year research grant for one of the Indian Institutes of Technology (IITs) to encourage the indigenous production of lab-grown diamonds (LGD), and a reduction in customs duty on the seeds and machines used to produce these precious commodities.
The industry was quick to react and laud these announcements and here is what they opined -
Vivek Ramabhadran, CEO & Founder, Aulerth said: "The Indian government has taken more purposeful steps to reduce the usage of physical gold/gold jewellery as investments. Conversion of physical to digital gold with no added tax, higher import duties on gold were maintained and higher import duties were posed on articles made from gold, and silver. Reduction of duties on lab-grown diamonds, support for the development of such facilities locally are also a welcome move”
Rohan Sharma, Managing Director, RK Jewellers said: "Due to the fact that lab-grown diamonds are environmentally benign, extremely affordable, and popular among millennial customers, demand for them is growing both locally and internationally. The government's support in the form of a grant will prove to be a bold decision and will quickly help India become one of the largest hubs for lab-grown diamonds.”
He added, “There are 6-7 million carats of lab-grown diamonds produced worldwide, with 1.5 million carats coming from India. This means that the lab-grown market has quick growth and demand as well as its future possibilities for the Indian jewellery sector. Because they are more affordable and environmentally friendly than traditional diamonds, young diamond consumers are loving this lab-grown diamond jewellery. “
Pawan Gupta, director, PP Jewellers by Pawan Gupta, said: “We are happy to hear some reduction in the taxes levied, people could now have more money to spend, which in turn would give the economy the boost it needs. Demand for lab-grown diamonds is rising both domestically and internationally as a result of their environmental friendliness, tremendous affordability, and appeal to millennial consumers. India will soon become one of the greatest hubs for lab-grown diamonds thanks to the government's backing in the form of a grant, which will prove to be a brave move on the part of the government. We were hoping that the government would propose a duty reduction which is the need of the hour to make both trade and consumption of gold and silver easy and fair.”
Dishi Somani, Founder of DishiS Jewels said: “The budget for 2023 is neutral for the gem and jewellery sector, and the industry is believed to reap benefits from the fiscal year announcement. Undoubtedly, the jewellery industry will expand, as the sector is a major contributor to India's economy, making up 7% of India's GDP. Businesses that intend to venture into the lab-grown diamond sector will immensely benefit. This is because the seeds from which they are manufactured have lowered the import duties and will be manufactured indigenously, which will make them more cost-effective and develop the domestic jewellery industry."
Premjit Sengupta, Brand Consultant, Gems & Jewellery Industry said: “It's a commendable move by the government to make provisions to boost the potential of the Lab Grown Diamond (LGD) segment by reducing customs duty on seeds used in production to zero from 5%. This makes lab-grown diamonds more accessible to consumers and is expected to establish India as a leader in the lab-grown diamond and jewellery manufacturing industry. This move is expected to establish India's world leadership in the rough to finished lab-grown diamond and jewellery manufacturing industry, while promoting the environmentally-friendly and high-employment potential sector.”
He added, “The Union Budget 2023-24 also includes a research grant to an IIT for five years to encourage local production of lab-grown diamonds. These diamonds are eco-friendly, have high employment potential, and have the same properties as natural diamonds. Lab-grown diamonds are made in a controlled laboratory environment using machines, while natural diamonds are mined from the earth.”
