NEW DELHI: Makers of lab-grown diamonds can’t market their gems using any term other than “synthetic diamonds” and statutory guidelines will soon be framed in this regard, a senior official said.
The consumer affairs ministry on Tuesday held consultations to frame regulations for distinct marketing labels for natural and lab-grown diamonds amid rising confusion, mix-ups and possible unethical selling practices, the official said.
Scientists can now create diamonds that are similar to earth-mined diamonds, containing identical optical radiance, chemical and physical attributes, and even receive certification.
The rising popularity of lab-grown diamonds, which are cheaper to own, has boosted India’s jewellery business.
Management and business advisory firm Technopak estimates that India’s lab-grown diamond market was valued at $264.5 million (approximately ₹2,228 crore).
It is in this context that the government is looking to frame regulations and guidelines over concerns regarding the lack of “standardised terminology and inadequate disclosure practices in the diamond sector”.
In the meeting with diamond-sector representatives chaired by consumer affairs secretary Nidhi Khare, the ministry said these “gaps” had led to consumer confusion and misleading practices, especially concerning the differentiation between natural diamonds and lab-grown diamonds.
The government legally recognises lab-grown diamonds. However, the Bureau of Indian Standards, the national certifying agency, already mandates that the term “diamond” alone must exclusively be used to refer to natural diamonds.
Lab-made diamonds must be explicitly referred to as “synthetic diamonds” irrespective of the production method or material used.
Khare said the Central Board of Indirect Taxes and Customs reinforced these measures on October 30, 2024, mandating the explicit declaration of whether a diamond is natural or lab-grown, and if lab-grown, the production method ought to be specified.
Synthetic diamonds are made in special laboratories using chemical processes, such as chemical vapour deposition and high-pressure high temperatures.
The meeting agreed upon the need for explicit labelling and certification for all diamonds, specifying their origin and production method.
“We welcome rules for fair and accurate labelling, which will boost trust and business. Customers are aware of basic aspects of lab-grown diamonds,” said K. Nathan of the North India Gems Association.
The proposed guidelines will prohibit misleading terms like “natural” or “genuine” for lab-grown gems.
Natural diamonds have tiny amounts of nitrogen, while lab-grown diamonds have zero nitrogen.
Natural diamonds are formed due to millions of years of extreme pressure from the Earth’s crust. Labs are used to create the same pressure to make synthetic diamonds.