Surat:  In an important announcement that would benefit the emerging Lab Grown Diamonds industry in Surat and elsewhere, Union Finance Minister Nirmala Sitharaman, on Wednesday, in her Budget speech, declared a Reduction in basic customs duty on the seeds used in the manufacturing of rough lab-grown diamonds from 5% to nil. 

Sitharaman said, “India is a global leader in cutting and polishing of natural diamonds, contributing about three-fourths of the global turnover by value. With the depletion in deposits of natural diamonds, the industry is moving towards Lab Grown Diamonds (LGDs) and it holds huge promise. To seize this opportunity, I propose to reduce basic customs duty on seeds used in their manufacture.”

With effect from 02.02.2023 customs duty on the Seeds for use in the manufacturing of rough lab-grown diamonds will be nil. Previously it was 5%.

“Lab Grown Diamonds (LGD) is a technology-and innovation-driven emerging sector with high employment potential. These environment-friendly diamonds which have optically and chemically the same properties as natural diamonds,” said the FM.

Sitaraman also announced that to encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant will be provided to one of the IITs for five years.”  DeshGujarat