Union Minister Piyush Goyal said that lab-grown diamonds are indistinguishable from natural ones, emphasizing that they will now be included in Free Trade Agreement discussions with other nations. Minister Goyal made these remarks during a press conference in Jaipur, just before the upcoming two-day G20 Trade and Investment Ministerial Meetings set to commence on Thursday.
The meeting's five key focus areas encompass trade-driven growth and prosperity, resilient global value chains, the integration of micro, small, and medium-sized enterprises (MSMEs) into global trade, effective trade logistics, and the reform of the World Trade Organization (WTO). Minister Goyal shared positive news during the event, highlighting India's substantial contribution to the lab-grown diamond sector. A global consensus has been reached that lab-grown diamonds are not artificial or synthetic; instead, they hold an equivalent status to natural diamonds. The recognition of lab-grown diamonds as akin to natural diamonds has also been acknowledged by the United States.
Lab Grown Diamonds (LGD) represent an emerging sector driven by technological innovation, boasting considerable potential for employment. These environmentally-friendly diamonds possess identical optical and chemical characteristics to their natural counterparts. In the 2023 Budget, the Indian government announced plans to support indigenous production of LGD seeds and machinery, aiming to reduce reliance on imports. As part of this initiative, a research and development grant will be provided to one of the IITs over a span of five years. Additionally, a proposal to eliminate customs duties on LGD seeds, previously set at 5 percent, was put forth.
Earlier in the day, Minister Piyush Goyal engaged in a bilateral meeting with Ngozi Okonjo-Iweala, the Director General of the WTO, in Jaipur. Following the discussion, Goyal affirmed India's commitment to fostering equitable and unobstructed trade, along with fortifying and modernizing the rules-based multilateral trading framework. This update was shared by Goyal on X, formerly known as Twitter.