In a bid to enhance the competitiveness of India’s diamond industry, the Union government has introduced the Diamond Imprest Authorization (DIA) Scheme for the duty-free import of natural cut and polished diamonds.
Set to take effect from April 1, the DIA Scheme offers a streamlined process to facilitate the duty-free import of natural cut and polished diamonds under ¼ carat (25 cents), with the aim of promoting value addition and driving export growth, according to a press release by the Ministry of Commerce & Industry.
The scheme comes with an export obligation that mandates a 10 percent value addition, the statement said. Diamond exporters with Two Star Export House status or higher, and those with annual exports of at least $15 million are eligible for availing the benefit under this scheme, it added.
The initiative responds to ‘Beneficiation’ policies adopted by several natural diamond mining countries, such as Botswana, Namibia, and Angola, where manufacturers are required to establish cut and polishing facilities for a minimum percentage of value addition.
The scheme is also designed to preserve India’s position as a global leader in the diamond industry’s entire value chain.
“The scheme is crafted to provide a level-playing field for Indian diamond exporters, particularly MSME exporters, enabling them to compete effectively with larger peers,” stated the Commerce Ministry.
Additionally, the scheme is expected to generate more employment opportunities, particularly for diamond assorters and in the processing of semi-finished diamonds. By facilitating Indian exporters, it seeks to protect the domestic diamond processing industry and sustain associated employment.
The diamond industry is currently facing a steep decline in exports and job losses among workers. This scheme is expected to counter these trends and help rejuvenate the sector.
According to the latest data from the Gems and Jewellery Export Promotion Council (GJEPC), India’s gross exports of gems and jewellery in December 2024 stood at $1,967.98 million, marking a decline of 10.29 percent compared to the same period last year. This decline is attributed to economic uncertainty, with buyers turning to gold as a safer investment option instead of spending on lifestyle products, according to the Council.
(Inputs from IANS)