Surat Diamond Industry Divided Over Lab-Grown Diamonds 

Surat : The diamond industry in Surat, India’s biggest hub for diamond cutting and polishing, is witnessing a fierce debate over the rise of lab-grown diamonds. A statement by Govind Dholakia, chairman of Shree Ramkrishna Exports and Rajya Sabha MP from Surat, has triggered strong reactions from key players in the industry.

Speaking at a private university event, Dholakia claimed that the ongoing recession in the diamond sector is due to the increasing popularity of lab-grown diamonds. He went as far as to say that lab-grown diamonds will soon be sold “in kilos and tonnes.” This remark has caused an uproar, with Mukesh Patel, chairman of Green Lab Diamonds, challenging Dholakia to differentiate between natural and lab-grown diamonds with his naked eye. Patel even declared that if Dholakia could do so, he would hand over his entire business to him.

Dholakia Blames Lab-Grown Diamonds for the Crisis

Dholakia emphasized that the diamond industry has faced multiple downturns in the past, but this is the worst in 60 years. He argued that the advent of lab-grown diamonds has confused consumers, who now struggle to decide between natural and man-made diamonds.

“This is not a global recession. If the rest of the world is fine, why is the diamond industry suffering? It is because of lab-grown diamonds. Earlier, they were sold in carats, but soon they will be sold in kilos and tonnes,” he said.

Mukesh Patel Challenges Dholakia’s Claims

Reacting strongly, Mukesh Patel questioned Dholakia’s statement and its timing, calling it an attempt to mislead the industry.

“Why did Govindbhai say this? The entire industry is shocked. Lab-grown diamonds have actually saved lakhs of workers from unemployment during this slowdown,” Patel stated.

He likened the situation to past technological shifts, such as Kodak dismissing digital cameras and BlackBerry resisting touchscreen phones. Patel insisted that lab-grown diamonds are not a threat but an evolution of the industry.

“Not everyone can afford natural diamonds. Lab-grown diamonds are like test-tube babies—scientifically created but just as real. If Govindbhai can spot the difference with his naked eye, I will give him my entire business.”

Industry Leaders Defend Lab-Grown Diamonds

Babubhai Vaghani, president of the lab-grown diamond association, supported Patel’s views, arguing that lab-grown diamonds have become the primary source of income for many artisans.

“If lab-grown diamonds didn’t exist, many diamond artisans would be jobless today. The slowdown in natural diamonds has forced 80% of the workforce to shift to lab-grown diamonds. Prices are affordable, and the demand is growing rapidly,” Vaghani said.

He pointed out that Surat now polishes around 30 lakh carats of lab-grown diamonds every month, with nearly 50% of rough lab-grown diamonds being produced locally using advanced Chemical Vapor Deposition (CVD) technology.

The Future of Lab-Grown Diamonds in India

Lab-grown diamonds are witnessing significant growth in India, with demand increasing by 20% annually. More than 400 jewelry factories in Surat are now producing lab-grown diamond jewelry, compared to less than 100 a year ago. These diamonds are being exported to the US, Japan, China, and other countries.

Industry experts predict that lab-grown diamonds will dominate the Indian market in the coming years, with the potential to be worn by 70% of consumers. While natural diamonds continue to hold value, lab-grown diamonds are carving their own niche, offering affordability and sustainability.