Budget 2023: What are lab-grown diamonds, mentioned by FM

Source: The post is based on the article “Budget 2023: What are lab-grown diamonds, mentioned by FM” published in Indian Express on 3rd February 2023.

What is the News?

During the Budget speech, the Finance Minister announced the government’s move to focus on lab-grown diamonds. 

What are Lab Grown Diamonds?

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What are LGDs used for?

Firstly, LGDs are most often used for industrial purposes, in machines and tools. Their hardness and extra strength make them ideal for use as cutters. 

Secondly, pure synthetic diamonds have high thermal conductivity, but negligible electrical conductivity. This combination is invaluable for electronics where such diamonds can be used as a heat spreader for high-power laser diodes, laser arrays and high-power transistors.

Thirdly, as the Earth’s reserves of natural diamonds are depleted, LGDs are slowly replacing the prized gemstone in the jewellery industry.

What are the steps announced in the Budget on Lab Grown Diamonds?

Finance Minister announced:

A five-year research grant for one of the Indian Institutes of Technology (IITs) to encourage the indigenous production of lab-grown diamonds and 

Reduction in customs duty on the seeds and machines used to produce the Lab Grown Diamonds.

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