centre-introduces-diamond-imprest-authorisation-scheme

The Department of Commerce, Government of India, introduced the Diamond Imprest Authorisation (DIA) Scheme on Tuesday, aiming to enhance the global competitiveness of India's diamond sector, the Ministry of Commerce and Industry stated in a release.

The scheme, set to be implemented from 1 April, provides a streamlined mechanism for the duty-free import of natural cut and polished diamonds, thereby promoting value addition and boosting exports, according to the Department of Commerce.

Among its key features, the scheme allows the duty-free import of natural cut and polished diamonds of less than 1/4 carat (25 cents). It mandates an export obligation with a value addition of 10 per cent, the release added.

Department of Commerce introduces Diamond Imprest Authorization Scheme to boost the global competitiveness of diamond sector

Scheme to support MSME diamond exporters and safeguard the domestic industry

Read here: https://t.co/GKXlwhAkfq

— PIB India (@PIB_India) January 21, 2025

All diamond exporters holding Two Star Export House status or higher and achieving USD 15 million in annual exports are eligible for the scheme’s benefits, the Ministry noted.

The scheme responds to beneficiation policies in diamond-mining nations such as Botswana, Namibia, and Angola, where diamond manufacturers are required to establish cutting and polishing facilities to ensure a minimum level of value addition. 

Aimed at retaining India’s position as a global leader in the diamond industry value chain, the scheme is designed to provide a level playing field for Indian diamond exporters, particularly MSMEs, enabling them to compete effectively with larger peers.

It seeks to prevent the potential relocation of investments by Indian diamantaires to diamond-mining countries, as per the release. The scheme is also expected to create more employment opportunities, particularly for diamond assorters and workers involved in processing semi-finished diamonds in factories. 

 

The diamond industry has been witnessing a steep decline in exports and job losses. This scheme is expected to combat these challenges and rejuvenate the sector. By supporting Indian exporters, the scheme aims to protect the domestic diamond processing industry and sustain associated employment.

According to the latest data from the Gems and Jewellery Export Promotion Council (GJEPC), overall gross exports of gems and jewellery in December 2024 stood at $1,967.98 million, marking a decline of 10.29 per cent compared to the same period last year.