Surat Diamond Bourse

• 19 Dec 2023

For Prelims: Surat Diamond Bourse, Major Diamond Producing Countries, Lab-Grown Diamonds, Chemical vapor deposition method, Customs duty on imported seeds for Lab Grown Diamonds.

For Mains: Diamond Industry in India, Production Methods of Lab Grown Diamonds.

Source: TH

Why in News?

Recently, the Indian Prime Minister inaugurated the Surat Diamond Bourse (SDB) in Gujarat, marking a significant development in the diamond and jewelry industry.

• The SDB stands as the world’s largest office complex. It aims to relocate the diamond trading hub from Mumbai to Surat, leveraging Surat's diamond cutting and polishing expertise.

What is the Status of the Diamond Industry in India?

• About Diamond: A diamond is a rare, naturally occurring mineral made up of pure carbon. The word diamond comes from the Greek word Adamas, which means indestructible.
  • Diamond occurs in two types of deposits, primarily in igneous rocks of basic or ultrabasic composition and in alluvial deposits derived from the primary sources.
• Major Diamond Producing Countries: Russia, Botswana, Canada, South Africa, Democratic Republic of the Congo.
  • Russia is the world's largest producer of rough diamonds, mining nearly 42 million carats in 2022.

Note

Recently, the G7 group of countries have announced direct import restrictions on Russian-origin diamonds from January 2024 and diamonds processed by third countries like India from March 2024, which has raised major concerns for the Indian gems and jewelry trade and diamond processing industry.

• However, Lab grown diamonds are gaining traction for their eco-friendly nature.

• Diamond Industry in India: India is the world's largest cutting and polishing center for diamonds, accounting for over 90% of polished diamond manufacturing globally.
  • According to Indian Minerals Yearbook 2019, diamond fields of India are grouped into four regions:
    • Central Indian tract of Madhya Pradesh, comprising Panna belt.
    • South Indian tract of Andhra Pradesh, comprising parts of Anantapur, Kadapa, Guntur, Krishna, Mahabubnagar and Kurnool districts.
    • Behradin-Kodavali area in Raipur district and Tokapal, Dugapal, etc. areas in Bastar district of Chhattisgarh.
    • Eastern Indian tract mostly of Odisha, lying between Mahanadi and Godavari valleys.
  • In 2022, India ranks first among the top exporters in cut & polished diamonds.

What are Lab-Grown Diamonds?

• About:
  • Lab-grown diamonds (LGDs) are diamonds that are grown in a laboratory using advanced technology.
    • They are also known as cultured, synthetic, man-made, or artisan-created diamonds.
  • Natural diamonds form deep within the Earth over an extensive period, often up to three billion years, under extreme pressure and high temperatures.
    • LGDs have essentially the same chemical, optical and physical properties and crystal structure as natural diamonds.
  • Unlike mined diamonds, lab-grown diamonds do not involve the social and environmental ramifications associated with mining activities.
    • Consequently, all LGDs are considered eco-friendly and contribute positively to environmental preservation.
• Production Methods: LGDs are synthesized in laboratories via two primary methods: chemical vapor deposition (CVD) or high pressure, high temperature (HPHT).
  • Both HPHT and CVD methods of growing diamonds artificially begin with a seed, a slice of another diamond.

• Market Share in India: India, known as a significant hub for diamond cutting and polishing, has experienced a notable surge in export earnings due to the increasing global demand for LGDs.
  • However, their current share in the overall diamond industry stands at 2-3%.
  • To improve the share, In Budget 2023-24, the Union Finance Minister announced elimination of Customs duty on imported seeds used in the manufacturing process of rough LGDs.