Bengaluru: After Prime Minister Narendra Modi gifted Jill Biden, US President Joe Biden's wife, the 7.5 carat lab-grown diamond at the White House, the market for these gems have gained momentum, Aukera Jewellery Founder and CEO Lisa Mukhedkar said.
"Two years ago, Prime Minister Narendra Modi took 7.5 carat (lab-grown) diamond to the White House (and gifted it to Jill Biden) and that was a demonstration of his belief in this product. And thereafter, the market for these gems have gained momentum. Overall, the government policy has been pro-grown diamonds," she told UNI in a video interview on the sidelines of an event held by her signature Aukera Jewellery.
Mukhedkar said PM Modi supports grown diamonds because they are considered more sustainable and environmentally friendly compared to mined diamonds.
"The reason that our Prime Minister is in favour of grown diamond is because it is more sustainable and is more earth friendly choice. That is the reason he is promoting it. My diamonds also are cut and polished in Surat. Nine out of ten diamonds come out of Surat. So, there is employment provided. There is no loss of firegn exchange because it is not imported," she said.
Mukhedkar said PM Modi and the central government has been actively endorsing grown diamonds due to their perceived sustainability, economic, and ethical advantages.
"Last year in union budget, the import duty on mine diamond seed has been reduced. So the policy has been very much in favour of grown diamonds and for good reason," she told UNI in a video interview on the sidelines of an event held by her signature Aukera Jewellery.
Mukhedkar also implied that grown diamonds are seen as a more ethical choice, potentially referring to concerns over labour practices and environmental impact associated with traditional diamond mining.
Lab-grown diamonds are created using a process that involves placing a diamond seed in a reactor and simulating the high temperature and pressure conditions found in the Earth's core. This results in the growth of a rough diamond, which is then cut and polished to produce the final gemstone, Mukhedkar said.
The production of lab-grown diamonds primarily occurs in Surat. Once the initial seed is established, the entire process of growing the diamond and preparing it for sale takes place in India, she said.
By producing lab-grown diamonds locally in Surat, and manufacturing jewelry in nearby Mumbai, jewelers can streamline the supply chain and reduce costs. Without the need for importing diamonds, overhead expenses associated with international trade are minimised, Mukhedkar explained.
"This enables jewelers to offer their products at fair prices to consumers. Additionally, with the jewellery being manufactured domestically, it can easily be distributed to various parts of the country, further optimizing logistics and potentially reducing delivery times for customers," she said.
Indeed, lab-grown diamonds have been around for several decades, but their acceptance and recognition as genuine diamonds in the market have evolved over time. In 2018 when the US Federal Trade Commission (FTC) officially recognised lab-grown diamonds as diamonds, it had a profound impact on the market, Mukhedkar said.
Before this acknowledgment by the FTC, lab-grown diamonds may not have received the same level of recognition or legitimacy in the jewelry industry. However, once the FTC confirmed their status as diamonds, it provided clarity and assurance to consumers, jewelers, and other stakeholders, leading to increased acceptance and demand for lab-grown diamonds, Mukhedkar said.