Expansion of India’s Lab Grown Diamond Market 

Syllabus: GS3/Economy

Context

• India’s lab-grown diamond market is entering a high-growth phase as demand accelerates and funding surges amid the expansion.

Lab-grown Diamonds

• Lab-grown diamonds (also called synthetic or cultured diamonds) are real diamonds that are manufactured in laboratories using advanced technology that replicates the natural conditions under which diamonds form inside the Earth.
• Composition: Pure carbon
• Crystal structure: Same as natural diamonds (cubic crystal lattice)
• Physical, chemical, and optical properties: Identical to mined diamonds.
• They are made using technologies like the chemical vapour deposition (CVD) and high-pressure high temperature (HPHT).
• HPHT (High Pressure High Temperature)
  • Mimics the Earth’s mantle conditions.
  • Carbon is subjected to extremely high pressure and temperature to form diamonds.
• CVD (Chemical Vapour Deposition)
  • Carbon-rich gas (like methane) is broken down in a vacuum chamber.
  • Carbon atoms deposit layer by layer on a diamond seed crystal.
• How are they different from Natural? The natural diamonds contain small traces of nitrogen, whereas the lab-grown diamonds are nitrogen-free.
  • Lab-grown diamonds are eco-friendly and conflict-free. Unlike mined diamonds, which displace up to 250 tonnes of earth and emit greenhouse gases, lab-grown diamonds use less water and energy.
• Market of Lab Grown Diamonds: As of 2024 around 90% of the world’s diamonds are processed in India, accounting for approximately 75% of global turnover by value.
  • The lab-grown diamond market is expected to make up 16% of the global diamond market by 2029 from 12% in 2024.

Source: BS