GII was established in the year 1971 by the Gem & Jewellery Exporters Association. GII 's Gem Testing Laboratory is a service organisation working for the benefit of the Indian Gem industry. The Gem testing laboratory is a turning point in the history of Indian gem industry towards the scientific development in the field of Gemmology in India. The laboratory is supported by the industry, and hence the testing fees are at a very subsidized level.

Gem Testing Laboratory is the backbone of the Gem Industry in India. The Laboratory is also open to the General Public. Gem testing laboratory of the GII extends its services, whenever required, to the Customs department of the Government of India for identifying gemstones in the course of imports and exports. The gem testing facilities are also availed by other departments like income tax, police etc. India's premier, impartial and independent gem testing laboratory is located in the heart of the Gemstone market in Bombay i.e. Zaveri Bazar.More than 50,000 gemstones have been certified till date.

Gem Testing Laboratory is recognized by the CIBJO, the appex trade organization of the Gem Trade and Industry in the world. GII's Gem Testing Certificates are of international standard and are valid all over the world.

GII's Laboratory is serving the Industry by certifying gemstones in the course of exports and imports, when ever required. It safe guards the credibility of Indian gem industry, which in turn helps the growth of exports from the country. Eversince the science of gemstone started developing in India, the exports also started booming. Gemmological education indirectly gave a fillip to the export growth of gemstone from the country.

Research and development is the fundamental for the growth of any industry Keeping this vital aspect in mind and understanding the requirements and the needs of the Indian gem industry, GII started the Research and Developmental activities as early as in 1976. the research team of the institute engaged in various developmental programmes covering applied and pure science, study gemstone and their properties, with a view to improve the quality of gemstones exported from the country.

In the year 1979, GII has obtained the recognization as an R & D Laboratory by the Department of Science and Technology, Government of India.

In pursuit of perfection and attainment of more and more scientific achievements, the institute got the most coveted recognition as Scientific Industrial Research Organisation ( SIRO ) by the ministry of science and technology, Government of India in the year 1998. R & D Laboratory is headed by Dr. Jayshree Panjikar, a very well known Gemmologists in the world today.

Diamonds in India are considered to be as part of our culture and civilization. From time immemorial diamonds were primarily associated with India. Till 1875 it was assumed that diamonds were only found in India. India has the biggest workforce cutting and polishing of diamonds. Over 10,00,000 artisans are engaged in cutting and polishing of diamonds in India . The sizes ranging from 0.005 cts to 0.20 cts are the specialization of Indian artisans. No doubt in recent times India also entered in to the manufacturing of large size diamonds as well. The exports of diamonds from the country is to the tune of US$ 6 billions as against the world imports of US$ 11 billion in the year 2000. Such an important and massive industry in India needs a proper certification facility.

Keeping this need of the industry in mind, GII has started Diamond Grading and certification as per International Standards. Institute has opted for CIBJO Standards ( International Confederation of Jewelry, Silverware, Diamonds, Pearls and Stones) as gem identification laboratory of the GII is already officially recognized by the CIBJO.

Diamond certificate issued by the institute is of International standards as GII follows the same methods using CIBJO master diamonds for comparison standards GII is also equipped with the most sophisticated instruments that are used by International Laboratories in the World. Considering the growing importance of International certification standards based on grading for clarity, colour and cut proportions, the GII decided to set up the diamond grading and certification laboratory as per CIBJO Standards.

International Confederation of Jewelry, Silverware, Diamonds, Pearls and Stones Organisation is an appex body of the Jewelry industry established in Europe. At present the secretariate of CIBJO is in New York. CIBJO comprises all the sectors of the industry. It has established a code and nomenclature for the gemstone and Jewelry Industry. CIBJO Diamond Grading standards are internationally accepted system of grading based on its established rules.

CIBJO accords recognition to a competant impartial and independent trade laboratory in each country. Gem Testing Laboratory of Gemmological Institute of India is recognized by CIBJO. With the CIBJO recognzation the laboratory is considered to be at par with Laboratories of world repute. Unlike the private laboratories, the CIBJO registered laboratory has to follow the rules and regulations laid down by the CIBJO for issue of certificates. The certificates are accepted all over the world.

Each and every Diamond is certified after a thorough analysis and study by 3 diamond graders. Each diamond undergoes rigorous and meticulous study and analysis by the experienced ,highly qualified and internationally trained diamond graders and their opinion is compiled and codified to decide final grading of a diamond .

It is a non profit service rendered by the GII for the benefit of the Gem Trade and Industry. For clarity, the inclusions are plotted on the diagrams in the certificate. The laboratory is supported by Gem & Jewelery Exporters Association.

Colour grading is carried out by comparing the original master set of diamonds obtained from Gemmological Association of Great Britain, London duly certified by SSEF Laboratory in Switzerland as Master Diamonds.

Each diamond is manually compared with Master Diamonds by three separate graders individually. Computerised colorimeter is also used as a fourth opinion.