Surat, Feb 1 (IANS): Finance Minister Nirmala Sitharaman's announcement of cutting import duty on raw material for lab-grown diamond seeds has boosted the morale of the industry.

"This will not only grow the sector parallel to the real diamond sector, but will provide huge domestic employment," said Vijay Mangukiya, Regional Chairman of the Gems and Jewellery Promotion Council (GPEC)

Mangukiya told IANS, "At present the lab grown diamond sectors' share is just 1 to 2 per cent of the overall diamond sector. After exempting 5 per cent customs duty on lab-grown seeds, domestic production will increase.

"Now the sector is hopeful that in the next two to three years its market share will increase to 5 per cent and sooner will be become independent and parallel market to real diamond."

The Union government has announced a package for Research and Development for five years, which will give a jump to lab-grown diamonds.

The other major boost to the diamond industry comes from the increase in customs duty on imported gold jewellery, which curtails the unhealthy competition to domestic jewellery market and will provide level playing field to the domestic market, he said.

The Regional Chairman said, "Out of many demands only a few demands have been addressed by the Finance Minister. The industry was expecting a boost for the synthetic diamonds and was hoping that the customs duty on it will be reduced, but the FM has not touched the subject, and industry will have to pursue it with the Finance Ministry."