Surat Stuns with Rs.7,486 Cr Lab-Grown Diamond Imports

Surat, Gujarat — Despite its status as India’s epicentre of lab-grown diamond production, Surat has shocked the industry by importing ₹7,486 crore worth of lab-grown rough diamonds over the past year — a move that has stirred debate in the midst of a global recession and a slump in natural diamond demand.

The revelation has rattled the diamond industry, raising critical questions: If over 100 companies in Surat are already manufacturing lab-grown diamonds, why did traders feel the need to import such vast quantities from abroad?

Industry insiders reveal a surprising truth — the demand for lab-grown diamonds is outpacing the production capabilities of Surat’s own CVD (Chemical Vapour Deposition) rough producers. As a result, many traders are sourcing HPHT (High Pressure High Temperature) rough from China and Hong Kong, where prices are significantly lower than Surat’s home-grown alternatives.

“Surat is on the verge of becoming a global hub not just for growing lab-grown diamonds but also for exporting fine jewellery,” said a senior industry expert. “The infrastructure established for natural diamonds is now being leveraged to scale the lab-grown diamond ecosystem rapidly. But demand has simply exploded faster than we anticipated.”

This sharp increase in demand is tied to soaring global prices of natural diamonds, which are pushing buyers — particularly in the U.S. and UAE — to consider more sustainable and cost-effective alternatives. While some analysts feared overproduction in Surat, the latest import figures suggest the opposite — a supply gap that is being filled through imports.

Surat’s strategic shift toward lab-grown diamonds has gained momentum in recent years. The Gem & Jewellery Export Promotion Council (GJEPC) has organized three buyer-seller meets focused specifically on lab-grown diamonds over the past two years. The latest edition, held at the Surat Diamond Bourse, drew 18 international buyers from the U.S., UK, UAE, Russia, and more — signaling strong global interest.

Surat’s top 11 growers, loose LGD suppliers, and jewellery manufacturers showcased their products during the meet, further strengthening the city’s reputation on the international stage. “The turnout and business response were tremendous,” said a GJEPC official. “This year’s meet generated business worth around USD 8 million — a clear indication of market appetite.”

Despite the excitement, exports of polished lab-grown diamonds from India dipped slightly. Between April 2023 and March 2024, India exported US$1,402.3 million (₹11,611.25 crore) in polished LGDs — a 16.54% drop from the previous year’s US$1,680.22 million (₹13,468.32 crore). Industry leaders attribute the dip to global inflation and delayed international orders, not declining interest.

The U.S. remains the largest importer of India’s lab-grown diamonds, clocking in at USD 676 million. The UAE and Hong Kong follow at USD 208 million and USD 206 million, respectively. These numbers underline India’s critical role in the global LGD supply chain, even as it continues to depend on imports for raw materials.

A market survey by an international agency projects the global lab-grown diamond market to reach USD 50 billion by 2030, growing at a CAGR of 9.4%. Surat’s aggressive pivot toward lab-grown diamond jewellery, combined with rising global sustainability consciousness, places the city in a prime position to lead this growth.