Athira Sethu
Kochi, 4 December 2024
Aukera, Giva, Green Lab Diamonds, and Jewelbox, new-age jewelry brands, have been fighting back against the term “synthetic” being used to describe lab-grown diamonds. This, they argue, is the wrong connotation because people associate LGDs with inferior, cheaper diamond simulants like cubic zirconia, which do not have the properties of real diamonds.
These brands wrote a letter to the Central Consumer Protection Authority (CCPA), stating that LGDs possess the same physical, chemical, and optical properties as natural diamonds. Thus, they are nearly indistinguishable to the naked eye, unlike simulants. They implored regulators to move away from overregulation and focus on transparent labeling and consumer education in order not to stifle this nascent sustainable industry.
India’s lab-grown diamond industry is expanding rapidly, driven by consumer interest and investor support. For example:
- Giva raised Rs 255 crore in a recent funding round.
- Aukera secured Rs 26.7 crore.
- Jewelbox raised Rs 3.5 crore earlier this year.
The market for LGD jewelry in India is expected to grow from $299.9 million in 2023 to $1.19 billion by 2033, according to market forecasts.
Although this industry is growing, there are still problems, including unethical practices such as mixing LGDs with natural diamonds without proper disclosure. The CCPA has called upon diamond manufacturers to clearly distinguish LGDs and disclose their production methods to protect consumers.
The other challenge that the company faces is falling prices because of overproduction and competition. Still, the government is supporting this industry through research grants worth Rs 242.96 crores to help increase native production of LGDs; IIT Madras will initiate this work.
Because of its hardness and thermal conductivity, lab-grown diamonds have found applications in industries including electronics, aerospace, and medicine. As the industry develops, LGDs are taking on a position of greater importance within sustainable and innovative technologies.
