Grown diamonds to compensate the depleting production of mined diamonds: PHD Chamber

Grown diamonds will fulfill the rising demand for diamonds as the production of mined diamonds is going to deplete to only 62 million caratsin 2030 from the current level of 125 million carats in 2015. Whereas demand for the diamonds is projected at 221 million carats in 2030, said a recent study conducted by PHD Research Bureau of PHD Chamber of Commerce and Industry.

The current production of Grown Diamonds is 3,60,000 carats which is projected to rise to more than 20 million carats by 2030.

So grown Diamond can help in meeting around 13% of the demand supply gap by 2030, said the analysis.

 

However, there is lot of scope to enhance the production of grown diamonds to reduce the demand supply gap further.

Grown Diamonds are sustainable and pertinent source of diamonds. Grown diamonds is a sunrise industry majorly attributed to its several benefits to an economy in terms of generating employment, earning foreign exchange and providing a sustainable, ecological and origin guaranteed source of diamonds.

The study enumerated that diamonds grown by scientists in the diamond greenhouse instead of created in the earth's crusts are grown diamonds and are identical to earth mined diamonds in every way.

Both grown diamonds as well as earth mined diamonds have similar physical properties in terms of hardness, specific gravity, refractive index and dispersion.

Presently, grown diamonds are imported in India from Singapore, US, Europe, Russia and Malaysia for cutting & polishing and re-export to major diamond markets.

However, grown diamonds are misperceived as 'Synthetic Stones' as the product is placed under HS Code 7104 which is for 'Synthetic Stones'. Whereas, diamonds grown in earth are recognized in HS Code 7102.

The current HS code (7104) that covers grown diamonds creates a wrong image as 'Synthetic' in the minds of stakeholders.

The study suggests that grown diamonds are to be covered through the same HS code that categorizes Diamonds i.e. HS code 7102 but under a unique sub-category at the 6th and 8th digit level.

As people are not aware about the availability of a new choice in diamonds that are identical to mined diamonds; therefore the government first, recognizes the long-term growth prospects of grown diamonds, said the industry body.

Second, re-classify the grown diamonds under the category of diamonds and third, grown diamonds should be promoted through trade shows and exhibitions under the diamonds category, added the Chamber.

Handholding the grown diamonds as a 'Sunrise Industry' in India through its appropriate classification of HS code and effective promotional measures; all the stakeholders of the diamond industry and the entire society will be able to avail its various benefits and propel the economy's growth, going ahead.

Powered by Capital Market - Live News