India is playing a significant role in the lab-grown diamond industry, positioning itself as the world's second-largest producer of precious stones created in laboratories rather than extracted from the earth.
Despite this, the industry is facing challenges due to rising competition from other countries seeking a piece of the growing market and the decreasing prices of lab-grown diamonds, analysts say.
“If the prices of lab-grown diamonds continue to decline, it may affect the profitability of lab-grown producers – a major challenge for India’s lab-grown diamond industry,” says Tanvi Shah, director of CareEdge Advisory.
“The key factor for declining lab-grown prices is demand mismatch with excess supply.”
The prices of lab-grown diamonds has undergone a significant decrease, dropping to an average of $198.22 per carat in the last financial year, which spanned from April 1, 2023, to March 31 of this year.
This is a notable decline from the previous fiscal year, when prices averaged $355.51 per carat, according to the Gem and Jewellery Export Promotion Council’s data.
Lab-grown diamonds are essentially identical with the natural gemstones, both chemically and physically. But these gems are created in a laboratory using extreme heat and pressure to expedite the production process.
The popularity of synthetic diamonds has been on the rise globally, driven by various factors such as their affordability – costing less than a tenth of the price of the cheapest natural diamonds available.
Additionally, concerns surrounding the environmental and ethical implications of mining natural diamonds have further fuelled the demand for lab-grown alternatives.
“As lab-grown diamonds are a sustainable alternative, they are now becoming a preferred choice for the youth who prioritise environmental responsibility,” says Mukesh Shah, founder of Ashth by ConsciousCarats, a lab-grown jewellery brand in India.
India, known for being a hub for cutting and polishing natural diamonds, has leveraged its expertise to expand its production of synthetic diamonds in recent years. This strategic move aligns with the growing global demand for lab-grown diamonds and positions the country as a key player in the synthetic diamond market.
“With lab-grown diamonds becoming increasingly popular around the globe, this is creating a pathway for India to penetrate the international market by leveraging craftsmen’s expertise,” says Colin Shah, managing director of Kama Jewellery and former chairman of the Gem and Jewellery Export Promotion Council.
India produces more than three million lab-grown diamonds a year and accounts for 15 per cent of global production, according to CareEdge. Only China produces more. The US, Russia and Singapore are other major manufacturers.
“India, with more than 6,000 machines and reactors for producing lab-grown diamonds, has increased its production capacity over the years,” says Ms Shah of CareEdge.
The market for lab-grown diamond jewellery in India was valued at $264.5 million in 2022 and was estimated to have grown to $300 million last year, CareEdge analysis has found.
But while natural diamonds are difficult to source and mine, these man-made diamonds can be grown in a lab in a matter of days – meaning the increase in supply has been outpacing demand, pushing down prices.
The decrease in price has significantly affected the export value of synthetic diamonds from India. According to CareEdge, exports of lab-grown diamonds from India decreased by 16.5 per cent to $1.4 billion in the last fiscal year, down from $1.68 billion the previous year.
Despite an increase in the volume of synthetic stones being exported, the total value has declined due to the substantial drop in retail prices, the consultancy says.
“Since supply is unlimited with lab-grown diamonds, many believe the prices may drop further,” says Disha Shah, founder and designer at DiAi Designs, a lab-grown diamond jewellery company based in Mumbai.
“However, we believe that demand is also increasing proportionally and there will soon be a minimum threshold beyond which prices wouldn’t decrease further.”
CareEdge acknowledges prices are expected to stabilise and exports are anticipated to partially recover in the current financial year, from April 2024 to March 2025. The consultancy projects a growth rate of 7 per cent to 9 per cent on the previous financial year, aiming to reach a value of $1.5 billion to $1.53 billion.
Several factors contribute to this projection, including sluggish demand for natural diamonds and an increasing preference for the lab-grown versions. Additionally, the depreciating rupee has enhanced India's competitiveness as an exporter.
In a move to support the industry, the Indian government recently eliminated the basic customs duty on seeds used in diamond manufacturing, reducing it from 5 per cent to zero in the latest annual budget. This decision has provided a significant boost to the export-orientated sector.
The UAE, US and Hong Kong stand out as India's primary markets for lab-grown diamond exports. The UAE accounts for 14.6 per cent of India's total exports in this category. Notably, India's shipments of lab-grown diamonds have surged 23 per cent in the last financial year compared to two years earlier, according to CareEdge.
“This was largely supported by the India-UAE Comprehensive Economic Partnership Agreement,” says Ms Shah of CareEdge, referring to the trade agreement that came into effect in May 2022, which included reduced duties on gem and jewellery exports from India to the UAE.
However, India must also be vigilant of the increasing competition posed by other manufacturers.
“There is strong competition from countries like the US, China and Singapore with their growing investment in the lab-grown diamond industry, which has the potential to dominate the global market share,” says Mr Shah of Kama Jewellery.
In addition to its impressive production capacity, India possesses several other factors that contribute to its competitive advantage over its rivals.
“Some of the major factors are cost advantage, as low labour costs reduce the overall cost of production of lab-grown diamonds,” he says.
“I believe India is truly well-positioned to witness expansion and compete with its overseas counterparts over the coming years.”
However, he warns that geopolitical tensions and a sluggish global economy may hinder export growth.
In addition to these obstacles, there are still many consumers who view lab-grown diamonds as inferior to natural stones or consider them to be counterfeit, some industry experts say.
“This misconception is due to the lack of awareness and understanding about the characteristics and production process of lab-grown diamonds,” says Mukesh Shah.
However, he and other industry members assert that this perception is slowly changing, and they are confident demand for these stones will continue to increase.
“Lab-grown diamonds have slowly and steadily been accepted,” says Ms Shah of DiAi Designs.
“We see a stark difference from when we initially launched in 2018, to today.”
Zayed Sustainability Prize
The specs
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Fuel consumption: 6.9L/100km
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
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Engine: 51.5kW electric motor
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War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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KILLING OF QASSEM SULEIMANI
Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
The specs
Engine: 4.0-litre flat-six
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Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
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Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
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WBO Light Welterweight champion - 2004-06
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The specs: 2018 Jaguar E-Pace First Edition
Price, base / as tested: Dh186,480 / Dh252,735
Engine: 2.0-litre four-cylinder
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Transmission: Nine-speed automatic
Fuel consumption, combined: 7.7L / 100km
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Directed by:Tom Beard
Narrated by: Sir David Attenborough
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
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Coffee: black death or elixir of life?
It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?
Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.
The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.
The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.
Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver.
The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.
But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.
Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.
It also raises blood pressure, which is largely problematic for people with existing conditions.
So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.
Rory Reynolds
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Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
