India’s lab-grown diamond industry has demonstrated a remarkable level of cohesion, a trait deeply rooted in the country’s cultural tradition of unity. This collective approach is evident across various sectors, including in the United States, and is now prominently visible in India’s lab-grown diamond industry. This unity can be seen in several key areas, including policy support, supply chain collaboration, market expansion, and international influence.
1. Policy Support and Industry Planning
Government Support
India’s government has recently provided significant policy support to the lab-grown diamond sector, reducing production costs and enhancing the international competitiveness of Indian manufacturers:
- Electricity Tax Exemption: The government has announced the exemption of electricity taxes for the lab-grown diamond production process, directly lowering operational costs.
- Import Duty Reduction: The import duty on diamond seeds, essential for producing rough lab-grown diamonds, has been reduced from 5% to 0%, further reducing production expenses.
Additionally, the government plans to establish the InCent-LGD (Laboratory-Grown Diamond Center) to offer technical assistance and promote domestic research and development in Chemical Vapor Deposition (CVD) and High-Pressure High-Temperature (HPHT) technologies. This initiative is expected to drive further expansion in lab-grown diamond manufacturing and business.
Tax Incentives
In the 2024 fiscal budget, the Indian government has further reduced import duties on gold and silver and implemented safe harbor tax rates for foreign mining companies selling rough diamonds in India. These policies favor the growth of India’s lab-grown diamond industry, strengthening the sector’s overall cohesion.
2. Supply Chain Collaboration
Industrial Clusters
India holds 95% of the global market share in diamond cutting and polishing, a dominance attributed to its well-established industrial clusters and abundant, affordable labor. In the lab-grown diamond sector, India’s complete supply chain—from rough production to cutting and polishing, and finally to retail—supports cost reduction, efficiency improvement, and industry-wide cohesion.
Corporate Collaboration
Indian lab-grown diamond companies maintain close cooperative relationships, collectively addressing market challenges, sharing technological advancements, and driving the development and implementation of industry standards. This inter-company cooperation, supported by the government, has further fueled the industry’s growth and prosperity.
3. Market Expansion and International Influence
Market Demand
With the increasing consumer emphasis on environmental, ethical, and sustainable practices, coupled with a growing awareness of lab-grown diamonds, India has actively expanded into international markets. Particularly in developed regions such as the United States and Europe, India has secured a significant market share and achieved notable success.
Brand Development
Indian lab-grown diamond companies place significant emphasis on brand building, focusing on enhancing product quality, innovative design, and strategic marketing. Brands like Anantaa Diamonds, Vandals, Purekarat, and DiAi Design have successfully established a strong international presence, further boosting the overall strength and global influence of India’s lab-grown diamond industry.
A Reflective Comparison
In contrast, the internal competition and traditional short-termism in other markets seem to be more pronounced, often prioritizing quick profits over long-term strategies. This mindset, deeply embedded in certain cultures, emphasizes the outcome over the process, which poses challenges that cannot easily be addressed by policies or associations. As a result, the focus remains on immediate gains rather than sustainable growth, reflecting a lack of trust in long-term commitments due to concerns over security and stability.