The Gem and Jewellery Export Promotion Council (GJEPC), India’s trade body for the gem and jewellery industry, has announced new standards that redefine what constitutes a “diamond.”
The updated guidelines specify that a diamond must be a natural stone, mined from the earth, in line with the Federal Trade Commission’s (FTC) standards in the United States. This move aims to prevent the misrepresentation of laboratory-grown diamonds (LGDs) as natural diamonds and provide clarity within the diamond market.
The GJEPC is also advocating for updates to the Consumer Protection Act in India to reflect this definition, as current legislation does not explicitly differentiate between natural and lab-grown diamonds. This initiative seeks to address the gap in consumer protection and improve marketplace transparency.
Differentiating Natural from Lab-Grown Diamonds
Under the new standards, terms such as “real,” “genuine,” “natural,” and “precious” cannot be used to describe lab-grown diamonds. Instead, descriptors like “cultured” followed by “laboratory-created” or “laboratory-grown” must be used to identify LGDs. The FTC allows “cultured” for LGDs, but only with these qualifiers to prevent consumer confusion. While the term “synthetic” is not recommended, it remains permissible.
With LGDs growing in popularity due to their appeal for ethical sourcing and affordability, the GJEPC’s measures seek to clearly separate them from natural diamonds. According to GJEPC chairman Vipul Shah, “GJEPC will commence the process of educating Indian trade to ensure a level-playing field and compliance. This will ensure all key stakeholders of the trade value chain are responsible and empowered to guide, counsel, and advise consumers and consumer bodies to enhance consumer confidence.”
Industry Reactions: Support for Clarity
The GJEPC’s new standards have been well-received by industry stakeholders who see the potential to strengthen consumer trust and clarify the trade. Nirav Taswala, Partner at Peacemoon Traders in Mumbai, commented, “I support the GJEPC’s effort to demystify the difference between natural diamonds and lab-grown diamonds (LGDs). This will help grow consumer confidence and enlarge the platform of our trade. Personally, I would classify a diamond into two categories: natural or synthetic. A natural diamond is a natural diamond, and I wouldn’t mix up anything with that.”
Similarly, Anil Patel, Founder Partner of Enshine in Surat, noted, “The GJEPC’s move to distinguish between LGDs and natural diamonds will segment the market, allowing both natural and LGDs to thrive separately. Natural diamonds appeal to those who value rarity and tradition, while LGDs attract consumers who appreciate ethical sourcing, environmental benefits, and affordability.”
Implications for the Jewellery Industry
For jewellers, these new standards address the ongoing debate over diamond classification and marketing. By setting clear guidelines, the GJEPC aims to protect consumers from misrepresentation and enable jewellers to promote both natural and lab-grown diamonds as distinct products. This differentiation can help jewellers target various customer segments, offering a choice between the traditional appeal of natural diamonds and the ethical considerations of LGDs.
The move also brings India’s practices in line with international markets, especially the United States, where the FTC has already established similar guidelines. As a leading diamond processing hub, India’s adoption of these standards underscores its effort to support transparency in the global diamond trade.
Looking Ahead: Standardisation and Consumer Confidence
The GJEPC’s initiative is a step toward standardisation that may influence other markets and regulatory bodies. By clearly defining what constitutes a diamond, the council seeks to contribute to a more consistent global marketplace. This approach aims to safeguard consumers and encourage ethical standards in the industry.
As the LGD market continues to expand, jewellers will need to stay updated on regulatory changes and adjust marketing strategies as needed. Embracing the segmentation of natural and lab-grown diamonds will allow them to better serve different consumer preferences while maintaining industry standards. The GJEPC’s approach to diamond classification may also guide future regulations, potentially leading to broader global alignment on diamond standards.
