Recently the Associated Press reported that the most valuable item First Lady Jill Biden received during Joe Biden’s presidency was a 7.5-carat diamond from Prime Minister Narendra Modi worth $20,000. Concerns have been raised about the need for the prime minister of a developing country like India to give such an expensive gift. It is worth noting that the 7.5-carat lab-grown green diamond was presented as a symbol of 75 years of India’s Independence.
Modi presented this diamond in a box made of paper pulp, carved by skilled Kashmiri artisans. The diamond has been kept for official use in the East Wing of the White House, while other gifts received by Joe and Jill Biden have been sent to the archives. ‘Das Danam’, which denotes the 10 items donated when a person has seen 1,000 full moons, was also presented to 81-year-old Joe Biden. A copper plate from Uttar Pradesh, which bears a shloka was also presented to him.
Diamonds are an important part of India’s industries. The country has been a major exporter of finished diamonds and a major importer of rough diamonds. We have a large diamond-cutting industry which employs about 1.3 million people, located mainly in Gujarat. In 2015, the total export of finished diamonds was about $23 billion. But by 2023, it had shrunk to only $18.5 billion. Everyone wants to wear diamonds, but the increasing price comes in the way of people’s aspirations. That’s where lab-grown diamonds come into play. They are so similar to natural diamonds that only trained gemologists with specialised equipment can decipher the difference. Natural diamonds have trace amounts of nitrogen, boron or other foreign materials, which are not present in the lab-grown variety.
Due to the increasing popularity of lab-grown diamonds, the demand for natural ones has been affected globally. The supply of raw natural diamonds has also been disrupted due to the Russia-Ukraine war. The diamond industry has been facing a churn, and a large number of companies are closing down or are on the verge of closing down.
It is important that the market for lab-grown diamonds expands. A big selling point is their reduced price—80 per cent cheaper than natural diamonds. India has much at stake as the lab-grown diamond industry is growing rapidly in the country. Production centres are being set up in Gujarat, Rajasthan and other parts of the country.
And ever since Modi gifted the lab-grown diamond to the first lady in June 2023, awareness has increased significantly. When the Prime Minister tweeted about it and the news was broadcast in the media, more people came to know about lab-grown diamonds. According to a 2021 report, the export of such diamonds from India has been growing at a rate of 55 per cent per year. Today India supplies 15 per cent of the demand for lab-grown diamonds. There’s even more potential to grow as India is the second-largest market for diamond jewellery.
Also read: Lab-diamond boom divides Surat. ‘If everyone had Kohinoor, would it still have value?’
A matter of pride
What is the price of a 7.5-carat green diamond in India?
A 7.5-carat green diamond may cost $20,000 in the US, but in India its price ranges between Rs 2 lakh i.e. $2,500 and Rs 6 lakh i.e. $7,000. In FY 2024, India produced 16 million carats of lab-grown diamonds. Although there was a slight decrease in the export of green diamonds in the year 2023, it was still higher than $1.4 billion. A huge increase in the export of lab-grown diamonds was recorded in the previous years. It is believed that in the next five years, the export of green diamonds can increase up to Rs 40,000 crore.
Even the controversy may be considered a blessing in disguise—the popularity of green diamonds exported from India may increase even more.
Other gifts given by Modi are also no less interesting. In 2015, the PM gifted a hand-woven Banarasi silk saree to First Lady Michelle Obama. The saree, which took three months to make, was woven with gold and silver threads. In the same year, he gifted Queen Elizabeth II Darjeeling tea, Tanchoi stoles and organic honey from Jammu and Kashmir. In 2017, the Prime Minister presented hand-woven shawls from Jammu and Kashmir and Himachal to First Lady Melania Trump.
The gifts given by the Prime Minister to global leaders highlight the diversity and importance of India’s precious heritage or India’s economic interest. Prime Minister Modi has tried to present the best items made by our artisans in a new style to the world.
Leaders of the country should never let go of the opportunity to showcase our rich heritage and the excellence of the items made in our country. This in essence would be an expression of their patriotism and their duty toward the country.
Ashwani Mahajan is a professor at PGDAV College, University of Delhi. He tweets @ashwani_mahajan. Views are personal.
(Edited by Theres Sudeep)