Budget 2024 : The lab grown diamond industry is hoping for favorable import duty policies

The lab grown diamond jewellery industry is booming and there is so much excitement surrounding it. With advancements in technology, lab grown diamonds have become a popular choice for those looking for ethical and sustainable options. As we eagerly await Budget 2024, there are high expectations and demands regarding import duties that neBudget 2024, there are high expectations and demands regarding import dutiesed to be addressed. The lab grown diamond industry is hoping for favorable import duty policies that will encourage the growth of this sector and make it more accessible to consumers.

Lab grown diamonds are a game changer in the jewellery industry as they offer the same brilliance and beauty as natural diamonds, but at a fraction of the cost. They are created in a laboratory using advanced techniques that mimic the natural process of diamond formation. This means that they are not mined, which eliminates the ethical concerns associated with traditional diamond mining. Additionally, lab grown diamonds have a smaller carbon footprint, making them a more sustainable choice.

In Budget 2024, it is expected that the government will take into consideration the growing demand for lab grown diamond jewellery and make necessary changes to import duties. Currently, the import duties on lab grown diamonds are quite high, making it difficult for retailers to offer competitive prices to consumers. By reducing import duties on lab grown diamonds, the government can encourage more players to enter this market and make lab grown diamond jewellery more affordable for consumers.

Reduction in import duty on precious metals to 4%

The GJEPC has also sought reduction in import duty on precious metals Gold Bar (7108) from 15% to 4%. This will ensure that duty blockage of around Rs. 982.16 crore can be released resulting in more working capital in hand for industry. Untapped export potential for gold jewellery can be realised with more working capital (at least US$2 billion of US$ 11 billion in medium period of 2 years). GJEPC has sought reduction in import duty on Silver Bars (7106) from 10% to 4%; and reduction in import duty on Platinum Bars (7110) from 12.5% to 4%.

Opinions on the matter are divided, with some arguing that reducing import duties on lab grown diamonds will lead to unfair competition for natural diamond manufacturers. However, it is important to recognize that lab grown diamonds are not meant to replace natural diamonds, but rather provide an alternative option for consumers. By supporting the lab grown diamond industry and reducing import duties, the government can promote ethical and sustainable practices in the jewellery industry while also giving consumers more choice and affordability. This will ultimately benefit both consumers and the economy as a whole.