Lab-grown or man-made diamonds (LGDs) are grown inside a laboratory using state-of-the-art techniques under specific parameters. file | Photo Credit: Vijay Soneji
Gems and jewelery exporters on January 9 urged the government to announce support measures such as abolition of import duty on raw materials for lab-grown diamonds and jewelery repair policy to boost the sector and boost shipments in the upcoming budget. requested.
The industry also suggested presumptive taxation on sale of diamonds in Special Notified Zones and introduction of the proposed DESH Bill, which seeks to replace the existing law for Special Economic Zones.
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Seeking a sort of “diamond package” in the upcoming budget, the industry said in light of high inflation and economic crisis in america and Europe and Continuous lockdown in ChinaDiamond exports and jobs in Surat have been affected.
The traditional source of rough diamonds around the world is threatened by depletion of deposits, which also contributes to the exponential increase in the cost of extraction. Thus industries have found lab grown diamonds as a profitable option.
These lab-grown or man-made diamonds (LGDs) are grown inside a laboratory using state-of-the-art techniques under specific parameters. They have the same physical appearance, chemical composition and optical properties as natural diamonds.
A LGD is produced using seed, which is an important raw material.
“It is estimated that by 2025, LGD will contribute to 10% of global gems and jewelery exports, with the potential to spur economic growth. There will be a substantial reduction in dependence on imports, which will help reduce foreign exchange remittances. Will do
Colin Shah, founder and managing director of Cama Jewellery, said, “Employment opportunities will also increase and employment opportunities will also be created in ancillary sectors, if the duty on seeds is abolished.”
He is also the former chairman of the Gems and Jewelery Export Promotion Council.
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Regarding the jewelery repair policy, Mr Shah said that countries like UAE, Hong Kong and Turkey are major competitors of India as they have a simple policy of re-importing jewelery and sending it abroad for repair.
“India undoubtedly has the potential to become the global repair capital of gems and jewellery. It will be easier for large exporters to open their service centers here for import and re-export of jewelery they export abroad. This will create increase in jobs, technology transfer and exports from India,” he said.
Urging for a diamond package, Surat-based Indian Diamond Institute’s chairman Dinesh Navadiya said the gems and jewelery industry has been urging the government to announce supportive measures for the industry in the upcoming budget as it will help create jobs and boost exports. There are lots of possibilities.
According to the council, exports of gems and jewelery stood at $2.5 billion in November 2022, as against $2.4 billion in the same month last year.