CUTTING, POLISHING ADVANTAGE
India already cuts and polishes 90 per cent of the world’s diamonds, both natural and synthetic.
Much of that work happens in Surat in the western state of Gujarat – the country’s diamond capital – where lab-grown stones are now cut and polished alongside their mined cousins.
To move up the value chain, India is betting big on Chemical Vapour Deposition (CVD) technology, which is a cleaner, high-tech process used to grow diamonds layer by layer in controlled laboratory conditions.
With government backing, increased research and development, and lower import duties on diamonds, India hopes to become a one-stop shop for lab-grown gems.
India’s strength lies in integration, said Olya Linde, a partner at global management consulting firm Bain & Company.
She added that it is about owning the entire value chain – from growing stones and cutting them to selling finished jewellery in markets like Europe and the United States.
Yet at home, technology still collides with tradition, said observers.
For weddings and heirlooms, many Indians continue to see natural diamonds as the only true store of value, they added.
“Diamonds are an investment for our children’s future,” said New Delhi resident Rakesh Bacchawat.
“I consider lab-grown diamonds artificial, so I don’t think their value will appreciate much in the future.”
Another Delhi resident Nitesh Jain said: “Real diamonds can’t be compared to lab-grown diamonds. If you can’t afford it, buy the smallest diamond you can, but buy a real diamond.”
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