Union Home Minister Amit Shah has urged India's gems and jewellery industry to take control of the entire lab-grown diamond value chain and build Indian brands with a global footprint, saying the sector could see a massive expansion in demand.

Addressing the 52nd India Gem & Jewellery Awards in Mumbai on Sunday, Shah said the lab-grown diamond market could eventually become nearly 50 times larger than its current volume.

He called on Indian companies to establish leadership across manufacturing, technology, jewellery production, branding and international retail.

'Entire ecosystem should remain in Indian hands'

Shah said India has the infrastructure, skilled workforce, capital and established trading network needed to take advantage of the emerging market.

He urged jewellers and manufacturers in Mumbai and Surat to ensure that Indian companies remain involved across the entire supply chain — from making production equipment and growing diamonds to designing jewellery, creating brands and establishing stores overseas.

The Union government is working on a policy framework for the sector, while Gujarat and Maharashtra are also developing measures to support the industry, Shah said.

He said India should seek to become a leading global player in lab-grown diamonds rather than simply participate in the market.

Surat, Mumbai key to diamond trade

Shah highlighted Surat's central role in the global diamond industry, saying the city handles the cutting, processing and design of the overwhelming majority of diamonds worldwide.

He credited workers and businesses in Surat with contributing significantly to India's exports, employment and economic growth.

Mumbai, meanwhile, remains a major centre for diamond exports and the wider gems and jewellery trade. Shah said Maharashtra was working on infrastructure and policy measures to retain and attract businesses, including additional floor space allowances and improved connectivity.

India currently exports jewellery to markets including the US, Europe, West Asia and Hong Kong, while more than 90 per cent of the world's cut and polished diamonds are processed in the country, Shah said.

He added that India's trade agreements with the European Union, UAE, Australia, Oman and the UK could provide further opportunities for exporters.

Tax incentives, new facilities for industry

Shah also highlighted recent government measures aimed at strengthening India's position in the diamond trade.

Companies involved in rough diamond trading and businesses operating in special notified zones will receive a 15-year income tax exemption under the Taxation and Other Laws (Amendment) Act, 2026, he said.

According to Shah, the move is intended to help establish India as a major global centre for rough diamond trading.

He also pointed to the Bharat Ratnam mega common facility centre, inaugurated by Prime Minister Narendra Modi. The 1.25 lakh square-foot facility offers infrastructure for activities including 3D printing, casting and refining.

The proposed India Jewellery Park is expected to attract around Rs 50,000 crore in investment and create nearly one lakh direct and indirect jobs, Shah said. The Maharashtra government has also offered incentives including stamp duty concessions and access to electricity at affordable rates.

Shah highlights India's economic growth

Shah also used the event to highlight India's broader economic performance under the Modi government.

He said India had moved from being counted among the world's "Fragile Five" economies in 2014 to becoming one of the world's five largest economies.

Referring to the latest first-quarter GDP figures, Shah said India's economy grew 7.8 per cent, making it the fastest-growing major economy during the period.

He credited government initiatives in infrastructure, manufacturing and exports, including the Production Linked Incentive schemes, for supporting economic expansion.

Shah said the government's long-term objective was to position India as a global leader across sectors by 2047 and that policies would continue to evolve in response to changes in the global economy.

Maharashtra Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde were among those present at the awards ceremony.