Union Home Minister Amit Shah emphasized the significant growth potential in the lab-grown diamond sector during the 52nd India Gem & Jewellery Awards in Mumbai on Sunday. Shah highlighted that the market for lab-grown diamonds is poised to expand to nearly 50 times the size of the current diamond market, representing a massive opportunity for India's gem and jewellery industry. Speaking at the event, Shah urged the industry to ensure the sector remains firmly rooted in India, stating that India should emerge as a founder member and founder industry in the lab-grown diamond business, while Indian brands should become global brands.
Shah outlined India's strategic positioning to capitalize on this market expansion, stating that the country possesses infrastructure, capabilities, capital, and most importantly, entrepreneurs to lead the lab-grown diamond ecosystem. He emphasized that India has the industrial capacity, skilled workforce and financial resources needed to become a major player in the global lab-grown diamond market. Shah cited Surat and Mumbai as examples of cities that have built strong positions in the international diamond trade, with Surat handling around 90 per cent of the world's diamond-cutting business and more than 90 per cent of cut and polished diamonds processed in India.
The Centre will introduce a policy for the lab-grown diamond sector, while Gujarat and Maharashtra are also working on policy measures, Shah announced at the event. The government will provide support as the industry navigates changing global trade conditions. Shah highlighted India's free trade agreements with markets including the European Union, UAE, Australia, Oman and the UK, which could help boost jewellery exports. He also mentioned tax incentives for rough diamond trading companies and businesses in special notified zones, along with projects such as the Bharat Ratnam mega common facility centre and India Jewellery Park.
India's gems and jewellery exports stood at ₹2.44 lakh crore in 2025, accounting for 6.3 per cent of merchandise exports, according to Shah. The sector provides direct and indirect employment to nearly 75 lakh people. The India Jewellery Park is expected to attract ₹50,000 crore in investment and create nearly one lakh direct and indirect jobs, as highlighted by Shah. Maharashtra Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde were also present at the event.
