Differences of opinion over lab-grown diamonds in the Surat manufacturing sector

The diamond manufacturing industry in Surat is witnessing a fierce debate over the rise of lab-grown diamonds (LGDs). According to reports, a statement by Govind Dholakia, Chairman of Shree Ramkrishna Exports and Rajya Sabha MP from Surat, has triggered strong reactions from the industry.

Speaking at a private university event, Dholakia reportedly claimed that the ongoing recession in the diamond sector is due to the increasing popularity of lab-grown diamonds. His remark that lab-grown diamonds will soon be sold ‘in kilos and tonnes’ has caused an uproar, with Mukesh Patel, chairman of Green Lab Diamonds, reacting strongly, questioning Dholakia’s statement and its timing, calling it an attempt to mislead the industry.

Dholakia however, said 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 LGDs has confused consumers, who now struggle to decide between natural and man-made diamonds.

“Why did Govindbhai say this? The entire industry is shocked. LGDs have saved lakhs of workers from unemployment during this slowdown,” Mukesh Patel pointed out. “Not everyone can afford natural diamonds. Lab-grown diamonds are like test-tube babies—scientifically created but just as real. If Govind bhai can spot the difference with his naked eye, I will give him my entire business,” said Patel.

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

LGDs are witnessing significant growth in India, with demand increasing by 20% annually. More than 400 jewellery factories in Surat are producing lab-grown diamond jewellery, 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. While natural diamonds hold value, lab-grown diamonds are carving their niche, offering affordability and sustainability.