In a significant win for a developing industry, the Indian Government has abolished the import tax on crucial materials used in the production of lab-created diamonds.
As part of the chemical vapor deposition (CVD) method for manufacturing lab-created diamonds, a sliver of rough known as the ‘seed’ is placed in a chamber and heated to a high temperature, mimicking the natural process within which diamonds are created.
In India, importers were once forced to pay a 5 percent tax on the import of these seeds; however, that tax has been removed after a recent campaign led by the Gem and Jewelery Export Promotion Council (GJEPC).
“Lab-created diamonds is a technology and innovation driven emerging sector with high employment potential,” India’s finance minister Nirmala Sitharaman said in a statement.
“These are environment-friendly diamonds which have optically and chemically the same properties as natural diamonds.”
The GJEPC also requested the easing of import tax on polished diamonds from 5 per cent to 2.5 per cent; however, that request was not granted.
“Research grants for five years will encourage indigenous manufacturing here. It will also ensure India’s end-to-end global leadership in rough-to-finished lab-created diamond and jewelery manufacturing,” GJEPC chairman Vipul Shah said.
India accounts for approximately 15 percent of the global production of lab-created diamonds.
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